A Melbourne trades business has faced a hefty bill by not understanding the implications of an employment contract’s termination notice period.
The unidentified firm was forced to reimburse a former employee $8,595.
In addition to outstanding annual and long service leave entitlements, which should have been paid out when the employee left the company, management had told the employee when handing in their resignation that they would not be needed to work through the relevant notice period.
Underpayment in lieu of notice provisions, the worker was entitled to full pay for the entire notice period.
“These breaches resulted from a lack of understanding of workplace laws … highlighting the importance of employers getting informed about their workplace obligations,” Fair Work Ombudsman Natalie James said.
The business co-operated fully once the FWO became involved. Having been brought up to speed with the relevant legal requirements, Ms James said the business has “been put on notice and future mistakes could lead to serious intervention, including litigation”.