FWO takes IT solutions providers to court over back-payment failures  

News
02 Aug 20243 mins
Business OperationsGovernmentManaged Service Providers

Pure Telecom hit with penalties while My IT Partner faces legal action.

A photograph of a gavel lying sideways on a keyboard.
Credit: Andrey_Popov / Shutterstock

The Fair Work Ombudsman has targeted two IT solutions providers, Pure Telecom and My IT Partner, who both allegedly failed to provide back-pay to their employees.

According to a statement by the Ombusdman, the Sydney-based Pure Telecom, which trades as VMCN Solutions, had a $7,000 penalty imposed against it by the Federal Circuit and Family Court following action brought on by the FWO.

It also imposed a $1,400 penalty against its sole director, Steven Woods, and ordered Pure Telecom to back-pay the worker $22,148, plus superannuation.

The penalties relate to Pure Telecom failing to follow a compliance notice for it to calculate and back-pay entitlements to a full-time worker between November 2014 and July 2021.

The FWO claimed Woods was involved in the contravention.

In total, the employee was owed over $48,000, with Pure Telecom having partially back-paid the worker through an employment plan after the FWO issued the compliance notice and initiated the subsequent legal proceedings.

Judge Robert Cameron found that the underpayments were “significant” when comparing them to the employee’s annual salary of $55,000.

Meanwhile, the Ombudsman has started legal action against the Perth-based My IT Partner, which trades as My Info Tech Partner, after receiving a request from a full-time IT helpdesk support worker that was employed from August 2019 to August 2022.

A Fair Work inspector issued a compliance notice to My IT Partner in May 2023 after “forming a belief” that the worker had been underpaid during his employment and was not paid any wages for this final three weeks – wages that were allegedly owed under the Miscellaneous Award 2010 and 2020.

The FWO also alleges the worker was not paid accrued but untaken annual leave entitlements at the end of his employment, which is owed under the Fair Work Act’s national employment standards.

Additionally, the Ombudsman alleges that My IT Partner failed to follow the compliance notice to calculate and back-pay the worker’s entitlements.

“When compliance notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties and back-pay orders,” Fair Work Ombudsman Anna Booth said.

From the action brought on by FWO, My IT Partner faces a penalty of up to $41,250 plus a court order requiring it to follow the compliance notice, including rectifying underpayments plus interest and superannuation.

A hearing is listed for My IT Partner’s case in the Federal Circuit and Family Court on 27 August.