According to the Fair Work Ombudsman, a camera retailer has been fined over $15,000 for failing to pay severance pay to a employee that was made redundant.
Plaza Cameras Pty Ltd, which has a store in the Perth CBD, has been penalised $12,000 and its director, Ashley George Heuchan a further $3,500.
Federal Magistrate, Kenneth Raphael imposed the fines after Heuchan admitted to failing to pay a marketing manager $4,792 (eight weeks severance pay) after making her position redundant.
The prosecution against Plaza Cameras was launched in May this year after the company repeatedly failed to fulfil its promises to pay the worker. The employee finally got paid in July, more than two years after leaving the company.
The penalty was imposed due to the fact that it took so long for the employee to get paid and the magistrate quoted that a penalty of “more than a slap on the wrist” was warranted.
Leigh Quely, Fair Work Ombudsman WA director, commented on the result.
“Tough economic conditions represent challenging times for businesses but they are no excuse for failing to pay workers their full entitlements,” he said.
“Redundancy entitlements play a vital supporting role for people while they attempt to pick themselves up, find a new job and get back on their feet.”