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Friday, April 26, 2024

Disability care company in court over underpaid staff claims

A disability services company has been ordered to appear in the Federal Circuit Court over claims it underpaid staff by more than $80,000.

The Fair Work Ombudsman commenced legal action against the operators of Sunflower Care Services Pty Ltd, which provides care services to people with a disability in residential settings in WA, and the company’s owner and director, Joseph Karunarathna, after an employee lodged a request for assistance.

“A Fair Work Inspector issued a Compliance Notice to Sunflower Care Services in November 2020 after forming a belief that the company had underpaid six employees, engaged as support workers, a total of $80,280.91 between 2015 and 2020,” the Ombudsman said in a statement today.

It said the employees included a visa holder from India and a visa holder from Ireland.

“The six employees had allegedly been underpaid minimum wages and entitlements under the Social, Community and Disability Services Industry Equal Remuneration Order 2012; the Social, Community, Home Care and Disability Services Industry Award 2010 and the Fair Work Act 2009.”

The Fair Work Ombudsman alleges the company failed to fully comply with the Compliance Notice, which required it to pay the employees’ outstanding entitlements.

Fair Work Ombudsman, Sandra Parker said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.

“Compliance Notices are important tools used by inspectors to deal with apparent contraventions of the Fair Work Act or industrial instruments, most typically Modern Awards,” Ms Parker said. 

“Where employers do not respond to or comply with these Notices, we will take appropriate enforcement action to protect employees. A court can order a business to pay penalties for not complying with such a Notice, in addition to back-paying workers as appropriate.”

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”

She said the company is facing fines of of up to $33,300 and Mr Karunarathna faces a penalty of up to $6,660.

In 2016, the Disability Services Commission (DSC) stripped Sunflower Care Services of funding after complaints about the way disabled people were being housed and their treatment.

A hearing is listed in the Federal Circuit Court in Perth for June 16.

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