Wage Inspectorate Victoria files criminal charge against mortgage manager Premium Capital Finance

An alleged breach of Victoria’s long service leave laws could lead to a company copping a $3m fine.

A criminal charge has been filed against mortgage manager Premium Capital Finance in the Melbourne Magistrates’ Court.

A major finance company who took more than 10 months to pay a loyal employee their long service leave could be slapped with a $3m fine.

Wage Inspectorate Victoria has filed a criminal charge against mortgage manager Premium Capital Finance in the Melbourne Magistrates’ Court.

It alleges the company contravened Victoria’s long service leave laws by failing to pay a former employee $15,000 in long service leave when it was due.

The employee’s employment ended in September 2021 but it is alleged the entitlement was not paid until July 2022, in contravention of the long service leave legislation.

Under this legislation, any unused long service leave needs to be paid out on an employee’s final day of employment.

The former employee reported the matter to the Wage Inspectorate and an investigation was launched.

“For a company, the maximum penalty is 60 penalty units for each day during which the alleged offence continued,” a Wage Inspectorate Victoria statement read.

“If found guilty of the offence, the company faces a fine of up to $3.4m.”

The matter has been listed for mention on November 8.

The Wage Inspectorate enforces Victoria’s child employment, long service leave, wage theft and owner driver laws.

This is the Wage Inspectorate’s third prosecution of a finance company, with charges being laid against NAB in October last year and against Commonwealth Bank entities in August this year for allegedly underpaying long service leave.

These matters are still before court.

More than 4000 Coles workers were paid back in excess of $700,000 in long service leave last year after what a Magistrate described as a “systemic failure” to ensure employees received their full long service leave entitlements.

Coles pleaded guilty to seven criminal charges filed by the Wage Inspectorate relating to underpayment of long service leave.

Premium Capital Finance has been contacted for comment.