Early Learning Childcare Fair Work Case Study
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$85,000
$14,341
2
Repeat offending
Case overview
A Melbourne childcare operator was penalised $85,000 after underpaying two employees a total of $14,341 between September 2013 and December 2015. The underpayments included minimum ordinary hours, overtime, public holiday rates, annual leave and broken shift allowances.
The Fair Work Ombudsman took legal action against the operator, who had previously been penalised $19,980 in 2014 for underpaying five other childcare workers. Despite the earlier penalty, further underpayments occurred, prompting the Judge to impose a significant penalty to deter future breaches.
The case highlights the serious consequences of repeated wage non-compliance and the importance of understanding and meeting workplace obligations to avoid costly penalties and protect employees’ entitlements.
Case facts
What they should have done
The childcare operator would have already been aware that they were currently underpaying staff. Instead of ignoring this, they should have reviewed the wages of all current staff members to ensure they were paid according to the award. Although this would mean they would have to back pay employees upwards of $30,000, this would have prevented the additional $100,000 fines.
How Happy HR could have helped
Award and pay guide Interpretation
Tailored advice on pay and entitlements
Happy HR ROI$100,000+ in fines avoided
Got questions?
Frequently asked questions
What happened in this Early Learning Childcare Fair Work case?
A Melbourne childcare operator was penalised $85,000 after underpaying two employees a total of $14,341. The Fair Work Ombudsman took legal action after finding that the operator had failed to meet her employees’ workplace entitlements, despite having previously been penalised for similar breaches.
Why was the childcare operator penalised?
The operator failed to pay employees their correct minimum ordinary wages, overtime rates, public holiday entitlements, annual leave and broken shift allowances. The underpayments occurred between September 2013 and December 2015.
Why was this considered a repeat offence?
The childcare operator had previously been penalised $19,980 in 2014 for underpaying five other childcare workers more than $16,000. Despite the earlier penalty, further underpayments occurred, leading the court to impose a significant penalty to deter future breaches.
What should the childcare operator have done differently?
The operator should have ensured all employees received their correct wages and entitlements under the relevant award, including overtime, public holiday rates, annual leave and broken shift allowances. Regular payroll reviews and appropriate HR guidance could have helped identify and correct issues before they escalated.
How could Happy HR have helped prevent these Fair Work issues?
Happy HR could have provided access to qualified HR support to help the business understand its workplace obligations, interpret relevant award requirements and establish better HR practices. This could have helped identify potential compliance risks and reduce the likelihood of repeated underpayments.
See how Happy HR helps childcare businesses reduce HR risks
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