Kleen Group and director fined $24,990 by FWO

The Sydney-based director and his company fined after 'failing to co-operate' with FWO investigation into the alleged underpayment of an employee.

Kleen group logoHenry Andrew Nickolls and Kleen Group Pty Ltd were fined almost $25,000 for ‘failing to co-operate’ with a FWO investigation, reported an agency release on 25 February.

Federal Circuit Court Judge Sylvia Emmett handed down a penalty of $20,400 against the contracting company itself, as well as a ‘further penalty of $4,590 against the company’s sole director, Henry Andrew Nickolls.’

Judge Emmett also issued a first-of-its-kind court order requiring Kleen Group to produce within 28 days the employment documents it originally failed to release to the FWO.

Fair Work Ombudsman Natalie James noted ‘the penalty shows that employers cannot thwart an investigation by the FWO by failing to respond to its requests’.

“The decision acknowledges the power of a Fair Work inspector to seek documents and records as part of an investigation,” she continued.

According to the release, the FWO originally ‘sought to engage with Mr Nickolls and Kleen Group after an operations manager complained about being underpaid’. When they did not comply, the agency then issued a notice to produce (NTP) ‘relevant employment documents’ within 18 days. Again, the company did not co-operate.

‘Under the Fair Work Act, business operators must comply with NTPs issued by Fair Work inspectors or make a court application for a review if they are seeking to challenge a notice,’ the release stated.

‘Judge Emmett noted it is “imperative” that employers do their utmost to comply with FWO requests for documents.’

“Notices to produce are fundamental to the progress of any investigation of an allegation of contravention, or non-compliance, with the Act by the Fair Work Ombudsman,” she said.

“Building a culture of compliance with workplace law is important, and employers should be aware that we are prepared to take action where appropriate,” added James.

“The penalties for contempt of court are serious, and in the event that the order [issued to Kleen Group] is not complied with, we will continue to pursue all options available to us.”

www.fairwork.gov.au

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