Automotive repair business penalised for breach affecting young apprentice
The Fair Work Ombudsman has secured more than $27,000 in penalty and back-payment orders in court against the operator of an automotive repair and maintenance business in western Sydney for a breach affecting a young apprentice.
The Federal Circuit and Family Court imposed a $9,577.80 penalty against sole trader Phyrum Um, who owns and operates a business registered as Intense Panel & Paint trading as Slick FX Bodystyling, in Yennora.
The penalty was imposed in response to Mr Um failing to comply with a Compliance Notice, which required him to back-pay entitlements owed to a young worker with disability he had employed as a part-time apprentice panel beater between May 2021 and May 2022.
The worker was aged 21 at the commencement of his employment.
The Court has also ordered Mr Um to pay the impacted worker his outstanding entitlements of $17,971.73, plus interest and superannuation.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties on top of having to comply with the Compliance Notice.
“When Compliance Notices are not followed, we will continue to take legal action to ensure workers receive all their lawful entitlements,” Ms Booth said.
“To be left without more than $17,000 worth of entitlements is significant for any employee, and especially for a young apprentice. There can be serious consequences for employers who fail to meet those legal obligations.
“Employers need to be aware that taking action to protect young workers, which can often include apprentices, is among our top priorities.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The regulator investigated after receiving a request for assistance from the mother of the affected worker.
The regulator issued a Compliance Notice to Mr Um in June 2024, after a Fair Work Inspector formed a belief Mr Um had underpaid the worker’s minimum wages for ordinary hours, overtime entitlements, penalty rates for working Saturdays and public holidays, and accrued but untaken annual leave entitlements at the end of his employment.
These entitlements were owed under the Vehicle Repair, Services and Retail Award 2020 and the Fair Work Act’s National Employment Standards.
In her judgment, Judge Lisa Doust found there was a need to impose a penalty to deter Mr Um and other employers from similar future conduct.
“The penalty imposed upon the respondent must be sufficient to convey to other employers that they must give priority to meeting their lawful obligations as employers, one of which is to deal with the regulator,” Judge Doust said.
“It must also be sufficient to send a message that Compliance Notices are serious, and the failure to respond to them carries serious consequences.
“The penalty to be imposed upon the respondent must be sufficient to focus the respondent’s mind upon the importance of his compliance obligations in future.”
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
A free interpreter service is available on 13 14 50. Employees can also seek information from their employer or their union, if they are a member.
Information is available for employees and employers on our apprentices and trainees and young workers and students webpages.
Employers can seek information from their employer association if they are a member, and also use the FWO’s pay calculator and Small Business Showcase.
The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.