50,000 reasons why compliance isn’t an option; it’s a must

The Fair Work Ombudsman has commenced legal proceedings against the former operators of three Cash Converters stores in Victoria, alleging they underpaid seven full-time employees over $50,000 in wages and annual leave entitlements.

Our experts break down the key details of this case, the potential penalties faced by the operators and their sole director, and the FWO’s firm stance on addressing workplace underpayment issues.

From Epping to Yarraville, seven employees, and close to $60k in unpaid wages

The companies SNNB Enterprises Pty Ltd, Taylors Business Pty Ltd, and Yarraville Business Pty Ltd are accused of failing to pay seven full-time employees their accrued annual leave entitlements upon the conclusion of their employment. Additionally, it is alleged that wages for five of these workers were underpaid between November 2022 and February 2023.

After Compliance Notices were issued to address these breaches, the companies allegedly failed to comply, not calculating and backpaying the owed amounts without providing a reasonable excuse. The total amount required to resolve the claims outlined in the Compliance Notices was $58,605, with individual payments ranging from $2,972 to $16,833. These actions have raised serious concerns regarding their adherence to workplace obligations.

This is also the second time the FWO has taken legal action against Yarraville Business Pty Ltd, with the company fined over $16,000 in 2024.

The Fair Work Ombudsman is seeking penalties in court for the alleged failure to comply with the Compliance Notices and is also seeking penalties against Mr Grainger, the company’s sole director.

The three stores have since closed.

Prevention is better than a cure. Invest in an efficient payroll system

Wages, leave entitlements, and allowances are just some of the many things business owners must keep on top of when it comes to payroll compliance. Prevention is better than a cure – it’s much less costly, less damaging to reputation, and more efficient to pay employees correctly than to rectify underpayments. Consider investing in an efficient payroll system and seeking advice from HR experts on what you should be paying your employees.

If any of this information has raised any questions about your workplace compliance or you’ve got another matter you need assistance with, reach out to our experts via our 24/7 HR Advice Line.

Not a Citation HR client? To learn more about how Citation HR can support your business and streamline its people management practices, get in touch with our friendly team for a confidential, no-obligation chat.