A Melbourne mortgage broking business, Ansa Finance, and its manager have been penalised $99,900 by the Fair Work Ombudsman (FWO) for failing to take the steps required to backpay workers.
The penalties were imposed in response to the business failing to comply with Compliance Notices issued by the FWO and totalled $83,250 against Ansa Finance Pty Ltd, and $16,650 against the individual company manager, Joshua Fuoco.
Ansa Finance employed financial brokers and was issued multiple Compliance Notices by the Fair Work Ombudsman in relation to issuing backpay for underpaid workers and providing payslips.
In 2021 and 2022, a Fair Work Inspector served Ansa Finance with five Compliance Notices due to the company’s failure to meet minimum wage, leave entitlements, and payment obligations to five employees upon termination, as outlined in the Banking, Finance, and Insurance Industry Award 2020 and the National Employment Standards of the Fair Work Act.
In addition to the significant penalties issued to the business and manager, Ansa Finance has been ordered to comply with the Notices to rectify underpayments in full, with additional interest and superannuation. This is estimated to total more than $17,000.
In court, the judge determined the failure to act on the Compliance notices was a deliberate evasion of responsibility by the business. The court also found that the company manager, Mr Fuoco, had failed to take any corrective action despite assuring he would rectify underpayments.
This case acts as a costly example of how disregarding awards and labour laws has severe consequences, especially if previously offered the opportunity to correct mistakes by the Fair Work Ombudsman.
This case offers crucial lessons for business owners:
- Compliance with labour laws is mandatory: The Fair Work Ombudsman’s enforcement action against Ansa Finance underscores the critical importance of adhering to all aspects of labour law, including the issuance of timely pay slips and the fulfilment of all wage entitlements are a legal requirement that can carry heavy financial consequences if ignored.
- Consequences of non-compliance are severe: Penalties can extend beyond financial implications, affecting the company’s reputation. The legal proceedings added unnecessary costs and distractions to the business operations.
- Proactive resolution is key: The case highlights the importance of promptly addressing any compliance notices from labour regulators. Business owners and managers should take immediate action upon receiving such notices to avoid escalated penalties and legal action.
By ensuring compliance with labour laws, businesses can avoid costly penalties, protect their reputations, and maintain a positive working relationship with both their employees and regulatory bodies.
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