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Geelong Cable Locations to pay $10,000 for failing to properly pay out staff

A Geelong cable company was hit with a hefty fine for failing to pay out an employee’s annual leave.

A Geelong CBD cable company copped a $10,000 fine for failing to correctly pay out an employee after he was fired.

Sofworks, which operates Malop St’s Geelong Cable Locations, was hit with a penalty in the Federal Circuit and Family Court of Australia after the Fair Work Commission found the company had failed to pay an employee his accrued but untaken leave when his employment was terminated.

Shaun Stephen told the Fair Work Commission the company, which locates and exposes underground cables and pipes, owed him 144.55 hours’ worth of the accrued leave when he left in March 2021.

On behalf of the company, director Ben Minutoli said he failed to comply with a Fair Work compliance notice because the business was “struggling to keep its head above water” during the pandemic.

Ben Minutoli is the director of Geelong Cable Locations. Picture: LinkedIn.
Ben Minutoli is the director of Geelong Cable Locations. Picture: LinkedIn.

He also asked the court not to make a monetary penalty in any amount and declined to suggest an appropriate fine.

Judge Catherine Symons said she accepted the Covid-19 pandemic had created “difficult operating conditions”.

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“However, there was no detailed evidence of any kind placed before the court that illuminated the respondent’s true financial situation and capacity to pay any penalty,” Judge Symons said.

Although the company had paid the full amount to Mr Stephen by November 2021, Fair Work told the court that it had been provided with “numerous opportunities” to fix the payment before proceedings.

“Its failure to do so and to engage with (Fair Work) left it with no other option than to commence proceedings,” Fair Work submitted.

“(The Fair Work Commission) invites the court to infer that the respondent was motivated to rectify its noncompliance … only when and because these proceedings were commenced.”

Geelong Cable Locations director Ben Minutoli said the company was struggling to “keep its head above water” during the Covid-19 pandemic. Picture: Facebook.
Geelong Cable Locations director Ben Minutoli said the company was struggling to “keep its head above water” during the Covid-19 pandemic. Picture: Facebook.

Geelong Cable Locations challenged the need for deterrence, arguing it no longer had any staff and Mr Minutoli does not intend to employ anyone again “based on the risks”.

On behalf of the company, Mr Minutoli said there would be “no prospect that it would find itself in the same situation”.

Judge Symons considered the company’s co-operation with the proceedings and Mr Minutoli’s “willingness to accept (albeit belatedly) responsibility of what occurred, (and) that he would be unlikely to facilitate or acquiesce in a future breach … of workplace law”.

“I consider for this reason that there is little need for specific deterrence in this case,” Judge Symons said.

Geelong Cable Locations was ordered to pay the $10,000 penalty within 28 days.

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Originally published as Geelong Cable Locations to pay $10,000 for failing to properly pay out staff

Original URL: https://www.themercury.com.au/news/geelong/geelong-cable-locations-to-pay-10000-for-failing-to-properly-pay-out-staff/news-story/9feb410451dc781a8fd6d913d6ca76dd