LATROBE VALLEY: Company fined over long service leave
A Morwell based sheet metal fabricating company has been convicted and fined $12,000 after pleading guilty to criminal offences under Victoria’s long service leave laws.
Wage Inspectorate Victoria began investigating Romlik Pty Ltd after being contacted by a former apprentice who had not been paid their long service leave entitlement.
The former employee had worked continuously with the business for over eight years and had not taken any long service leave.
They believed the business was making regular contributions to a long service leave fund and that they would be paid long service leave benefits from this scheme.
The former employee made repeated requests for payment of their entitlement after leaving the business however was not paid.
After receiving a report from the former employee, Wage Inspectorate Victoria commenced an investigation. Despite repeated opportunities to do so, the business failed to meet its commitments and pay what it owed.
The Inspectorate subsequently filed charges against the business in May.
The company, on October 31, pled guilty to:
n failing to pay in full an employee’s long-service leave entitlement when their employment ended
n failing to comply with a notice to produce issued by the Wage Inspectorate
Counsel for the Inspectorate, Ms Tien Tran, submitted that a conviction should be recorded, given: the serious nature of the offence; the victim being a vulnerable former employee who commenced work as an apprentice on low wages; and the failure to be paid an entitlement owed despite the company’s awareness of its obligation to pay.
Ms Tran’s submitted that a clear message needed to be sent to other employers, whether in small businesses or large corporates, of the importance of careful compliance with the Long Service Leave Act 2018.
Magistrate Ann Collins imposed a fine of $8000 on charge one, and $4000 on charge two. The company was also ordered to pay the outstanding long service leave entitlement with interest (over $8700). A coniction was imposed.
But for the plea of guilty, the Magistrate said they would have convicted and fined the accused $15,000 and $6,000 respectively.
Robert Hortle, Commissioner of Wage Inspectorate Victoria, said: “Apprentices are generally young and work for low wages – making them some of the most vulnerable workers in Victoria.
“After almost eight years of loyal service the former apprentice had earned their long service leave entitlement.
“My message to employers is simple, keep good records and plan to pay your staff their entitlements – it will be cheaper for you in the long run,” Mr Hortle said.
The Long Service Leave Act 2018 is a Victorian law that provides long service leave for employees who have worked continuously with one employer for at least seven years. It applies to work that is:
- full time
- part time
- casual
- seasonal
- fixed term.