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Don’t sweat it – $50,000 for ignoring unfair dismissal compensation order
Unfair DismissalOctober 1, 2014
World Gym Sunshine, a Melbourne gym, has been fined after the company’s sole director and part-owner failed to respond to a Fair Work Commission Order. Mr Wayne George, failed to pay a 23 year old gym receptionist compensation after her dismissal was found to be unfair by The Fair Work Ombudsman.
The fine to be paid was $2,200 however this amount has now risen to $50,000. The company owner did not follow legal proceedings and failed to comply with The Fair Work Commission. The ruling by The Commission has set a bench mark for the gym and World Gym Sunshine Pty Ltd has been penalised $41,182.50 and Mr George has been fined a further $6426.
This shameful case has made the press numerous times this month, and now that the hearing has come to terms, it just goes to show that directors and company owners must comply with workplace practices at all times. The workplace relations system is to be respected and followed. If employers are not remorseful, significant financial payments will consequence, and these are much more costly than initial fines.
The matter became serious when Mr George ignored a Fair Work Ombudsman inspector and several notices requesting the gym to comply with the Commissions orders to pay the ex-employee. Litigation followed, as a result, and extensive efforts were made to resolve the matter. Court hearings, penalties and fines could have been avoided if the gym had accepted their wrong doings and responded straight away.
If you are contacted by The Fair Work Ombudsman as many companies have been the response is critical. If you are unsure of how to approach a Fair Work Order or an investigation call Employsure on 1300 651 415 or fill in the form below. We are able to provide you with the best possible actions to move forward should you find yourself in the wrong, Employsure offers solidarity but also gives you the protection and know-how to ensure that you are not faced with a claim again.
*Information sourced via The Fair Work Ombudsman website.