Australian workplace watchdog the Fair Work Ombudsman secured penalties in court for the second time against the former operators of a Melbourne juice and coffee bar and a director, after they kept more than AUD 14,000 (USD 9,269) in JobKeeper payments instead of paying them to an employee.

The JobKeeper programme was a stimulus package, first announced in March 2020, which aimed to help keep Australians in jobs and tackle the significant economic impact of the coronavirus. The programme ended on 28 March 2021.

The Federal Circuit and Family Court imposed an AUD 26,640 (USD 17,638) penalty against Rika Foods North Melbourne Pty Ltd., which operated a juice and coffee bar located inside the Sonsa Markets in Collingwood, and an AUD 5,328 (USD 3,527) penalty against company director Radomir Pantovic.

The penalties were imposed in response to the company failing to comply with a compliance notice requiring it to calculate and remit back-pay JobKeeper entitlements to a worker who had been employed by Rika Foods North Melbourne on a casual basis.

The Ombudsman investigated after receiving a request for assistance from the affected worker.

An inspector with the watchdog issued a compliance notice after Rika Foods received AUD 14,400 (USD 9,534) in JobKeeper payments from the Australian Taxation Office for the worker between September 2020 and March 2021 but failed to provide those payments to her.

In addition to the penalties, the Court has ordered Rika Foods North Melbourne to pay the AUD 14,400 (USD 9,534) in JobKeeper payments to the worker, plus interest.

The matter follows the Fair Work Ombudsman securing a total of AUD 11,988 (USD 7,937) in court penalties against Rika Foods North Melbourne and Pantovic in 2022 for failing to comply with a compliance notice requiring back payment of entitlements to a visa holder worker.

Judge Heather Riley found that the company and Pantovic had shown no regret for their conduct, adding that “there was a need to impose penalties to deter them and other employers from similar conduct in future.”