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Gym Owner Facing $39,000 In Penalties For Failing To Pay Entitlements

Gym owner facing $39,000 in penalties for failing to pay entitlements

A Sydney gym owner is facing $39,000 in penalties for failing to pay a worker her annual leave entitlements.

The Fair Work Ombudsman is also seeking a court order requiring the owner to rectify the wage theft.


UPDATE TO STORY

The Fair Work Ombudsman has discontinued its court action against Core9.

See below for full statement from Core9 and Kyle Arnold.


Gym owner in court

Facing the Federal Circuit and Family Court is Kyle Arnold, who previously operated the Core9 Fitness franchise outlet in St Ives.

It’s understood the full-time marketing assistant did not take any annual leave when she worked there.

Arnold then allegedly failed to pay her the $6,300 he allegedly owed at the end of her employment.

Fair Work commenced an investigation following a wage theft complaint from the worker.

Compliance Notice

An inspector subsequently issued Arnold with a Compliance Notice in August 2021 requiring him to calculate and back-pay the outstanding leave entitlements.

However, he allegedly failed to do so.

Regulator enforcing workplace laws

Acting Fair Work Ombudsman Mark Scully said the regulator will continue to enforce workplace laws.

“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.”


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Compliance Notices not optional

Industrial advocate Miles Heffernan said Compliance Notices are not optional.

“Employers who ignore orders to rectify underpayments can expect to pay hefty penalties in addition to repaying what they owe,” he said.

“Wage theft is a scourge on our society and on our economy.

“Hopefully the new Labor government will introduce tough national laws making wage theft a crime.”

Wage theft is a crime in Queensland and Victoria.

Anthony Albanese committed to introducing similar federal legislation if the Labor Party won the recent election.

Penalties

Meanwhile, Arnold is facing a penalty of up to $6,600 for failing to comply with the Compliance Notice, while his company faces a penalty of up to $33,000.

Fair Work will also ask the court to order Arnold the back-pay the outstanding leave entitlements, plus interest.

The Federal Circuit and Family Court has a directions hearing listed in Sydney on 17 June 2022.


STATEMENT FROM CORE9 AND KYLE ARNOLD

The Fair Work Ombudsman has discontinued proceedings against Core9 St Ives Pty Ltd (Core9) and its director Kyle Arnold.

During COVID, the business kept the employee on full pay, despite not being able to operate during Government lockdowns.

The employee alleged that she had accrued entitlements of approximately $6,000 that she was entitled to be paid upon ending her employment with Core9.

Following investigation, both Core9 and the employee agreed that this was not the case.

The employee subsequently withdrew the complaint to the Fair Work Ombudsman.

On 6 June 2022, Core9 and Kyle Arnold filed their defence in the proceedings.

On 1 July 2022, the Fair Work Ombudsman discontinued the proceedings against both Core9 and Kyle Arnold.

During the extended period of lockdowns, the owners of Core9 personally funded the business to meet staff entitlements in good faith when it could not trade.

The staff worked tirelessly during COVID, and we wish the fitness industry all the success in future.


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