Australia’s Fair Work Ombudsman launched legal action against the former operator of a café in eastern Victoria over underpayments to a worker who was employed on a casual and part-time basis.

Facing the court is sole trader Linda Mary Fielden who formerly operated The Lakes Boatshed Café in Lakes Entrance. The regulator started its investigation after receiving a request for assistance from a worker Fielden employed in a waitstaff role between November 2016 and March 2022.

The worker was employed on a casual basis before moving to part-time for the last 12 months of her employment period.

A Fair Work Inspector issued a Compliance Notice to Fielden in August 2022 after forming a belief the worker was underpaid entitlements owed under the Restaurant Industry Award 2010, Restaurant Industry Award 2020, and the Fair Work Act’s National Employment Standards.

The inspector said it believes that the worker was underpaid casual public holiday penalty rates, part-time public holiday penalty rates, part-time minimum wages, annual leave loading and personal leave entitlements, and was not paid accrued but untaken annual leave entitlements at the end of her employment.

The Fair Work Ombudsman alleges Fielden, without reasonable excuse, failed to comply with the compliance notice, which required her to calculate and back-pay the worker’s entitlements. It is alleged the worker has been only partially back-paid.

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

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties in addition to back-paying workers,” Ms Booth said.

The Ombudsman is seeking penalties in court for the alleged failure to comply with the compliance notice. Fielden faces a penalty of up to AUD 6,660 (USD 4,386). The regulator is also seeking orders for Fielden to rectify the alleged underpayment in full, plus interest.

A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 8 February 2024.