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Underpayments at the end of the rainbow

UnderpaymentsNovember 23, 2015

Underpayments at the end of the rainbow (Last Updated On: November 23, 2015)

The operators of a Sydney’s Rainbow Paradise Preschool childcare centre have been fined $14,083 after underpaying three teenage employees.

The penalty was imposed by Sydney’s Federal Court against Rainbow Paradise Preschool and director Gina Moelau, following investigations by the Fair Work Ombudsman (FWO).

The three young employees were underpaid a total of $8,214 between July 2009 and November 2011. One employee was not paid at all during her time at the childcare centre, whilst another was paid an average of $6.43 an hour. The correct hourly rate would have been in fact $16.72 an hour.

Each of the employees were 19 years old when they commenced working at the childcare centre, with it being the first job for two of the employees. The third employee had completed a traineeship prior to starting work full-time at the centre.

Two of the employees supervised the children whilst the third prepared meals and cleaned the centre. They were all underpaid their minimum wages, annual leave entitlements and their wages in lieu of notice of termination. One employee was not paid for any rest breaks.

The FWO discovered the underpayments after receiving requests for assistance from the employees. The Rainbow Paradise Preschool also failed to comply with two notices to produce employment records by the FWO, as well as breaching pay slip obligations.

If you would like to review your wage rates or check that you are meeting your employment obligations, call Employsure today on 1300 651 415. We can advise on all matters relating to minimum wage, leave entitlements and employee entitlements.

Source via Fair Work Ombudsman

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