Court Fines Hobart Hotel For Underpaying Assistant Manager

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10th December 2009, 12:16pm - Views: 687

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Fair Work Infoline: 13 13 94 

Media Release

   10 Dec 2009

Court fines Hobart hotel for underpaying

assistant manager 

The operators of Hobart’s Macquarie Motor Inn have been fined more than $63,000 for

underpaying a former assistant manager.

Crown Trading Group Pty Ltd, which operates the hotel, has been fined $52,800 and its

sole director Kurt Braune a further $10,560.

The penalties are the result of a prosecution by the Fair Work Ombudsman in the Federal

Magistrates Court in Hobart.

Braune and Crown contravened workplace law by underpaying the former employee a total

of $28,441 in overtime and annual leave entitlements.

As well as imposing the fines, Federal Magistrate Philip Burchardt also ordered Crown to

back-pay the worker $8041 still owing, plus $5846 interest after it only partially

reimbursed her earlier this year.

In his judgment, FM Burchardt said the case “calls very strongly for general deterrence”.

“This is an industry which is notoriously difficult and which has given rise to numerous

cases, including a number before me, involving underpayments of the sort which are

indicated here,” he said

“In this case, the tenor of the submissions made by counsel for the respondents strongly

suggests that there is no contrition whatsoever for the conduct that gave rise to these


The former assistant manager worked up to 70 hours a week from October, 2004 to

August, 2007 but was paid for only 40 hours. Overtime worked was ‘banked’.

She resigned in August, 2007 after her requests for accrued overtime and annual leave

entitlements to be paid-out were refused. Instead, she was offered instalments of $800 a


The Fair Work Ombudsman investigated the matter after the woman complained, but

launched court action after Crown refused to pay her entitlements.

Fair Work Ombudsman Tasmanian Director Glenn Jordan says the case sends a clear

message to others that failing to pay employees their lawful entitlements is a serious

matter which can prove costly for wrong-doers.


The Fair Work Ombudsman promotes harmonious, productive and co-operative

workplaces. It also monitors compliance and investigates breaches of national workplace


Employers or employees seeking assistance should contact the Fair Work Infoline on 13 13

94 or visit For translations call 13 14 50.

Media inquiries: 

Craig Bildstien, 0419 818 484. Ryan Pedler, 0434 365 924. 

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