The decision of FWO v Noorpreet Pty Ltd is a decision that should put all employers on alert in relation to paid parental leave.
The case was a prosecution undertaken by the Fair Work Ombudsman after an employer failed to pay an employee her government parental leave entitlements for more then five months. The employer argued that a daily credit limit prevented the government payment from being made.
In Noorpreet, the Court fined the employer and the director of the employer after it was discovered that the employer had created false records showing it had paid the employee.
The excuse of a credit limit and the creation of false documents ultimately lead the Court to issue fines of 70% of the maximum amount allowed.
Employers need to be on guard when paying parental leave as a failure to pay may lead to Court imposed penalties. They need to make sure it is passed onto the employee and not create records to mislead the Ombudsman.
If you need advice on parental leave obligations or assistance with a Fair Work Ombudsman's audit or investigation, contact Adam Foster at Lewis Holdway Lawyers on (03) 9629 9629 or firstname.lastname@example.org.