Yahoo Finance ‘Not paid’: $90k sting after child care centre’s volunteer rort
A Sydney childcare business and its owner will be required to pay $89,844 in penalties and wage back pay after failing to pay two workers an entire year’s pay.
The Joys Child Care centre Parramatta owner Jan Shang has been slapped with a $5,040 fine after incorrectly classing two workers as volunteers, while his company Joys Child Care Limited was hit with another $25,200.
The company will also be required to pay back the workers’ wages in full with interest, a sum of $59,604, taking the overall sting to $89,844.
Fair Work Australia said the two workers were “not paid” for any of the work done between February 2016 and February 2017, and the company had already been issued two Compliance Notices.
The two workers were originally from China, with one a visa-holder when she worked for Joys Child Care and the other a permanent resident.
The company was first investigated after the workers asked for help. Fair Work said it found the volunteer arrangement was illegitimate as the two workers had done productive work with little supervision. The work the two performed was also not a formal part of their studies.
Fair Work Ombudsman said the case was a reminder of the importance of Compliance Notices.
“Compliance Notices are an important tool we use to get unpaid wages back into workers’ pockets in a timely manner outside of the courts. If employers do not comply with Compliance Notices, they can face court action and fines, in addition to the initial wages back-payment bill,” Parker said.
Continuing, Parker said both employers and voluntary workers should consider whether the work performed satisfies the volunteer description, or whether waes are owed.
“Any workers with concerns about their working arrangements should contact us,” she said.
The Fair Work infoline if 13 13 94, and a free interpreter service is on 13 14 50.
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