Fair Work Infoline: 13 13 94
Media Release
8 Dec 2009
Court fines Newcastle company over ‘arrogant
disregard for welfare’ of staff
NSW Chief Industrial Magistrate Gregory Hart has delivered a stinging rebuke to a
Newcastle company director whom he found had shown an “arrogant disregard
for the welfare of his employees”.
The Court has instructed the Newcastle Bakehouse to pay a $17,000 penalty by
January 1 after finding the company deliberately failed to keep proper
employment records.
The Fair Work Ombudsman prosecuted the company after it failed to produce
employment records for a number of former staff who had complained they had
been underpaid.
Handing down his 15-page decision, CIM Hart found the company had
“consistently ignored or rebuffed” efforts by the Fair Work Ombudsman to assist it
comply with its legal obligations.
CIM Hart found that company director David Tape had shown “no trace of
remorse” for his failure to provide employees with such basic entitlements as a
regular payslip.
The Court heard allegations from former employees that the Newcastle
Bakehouse regularly withheld a week’s pay from staff, but refused to pay it back
when workers left the business.
Former employees also alleged that staff were frequently not paid for all hours
worked and that the company failed to pay sick leave and annual leave
entitlements.
CIM Hart noted that the company’s failure to maintain proper time-and-wages
records may make it extremely difficult for underpayments to be calculated – but
that they could amount to tens of thousands of dollars.
“Consequently, the deliberate failure to maintain proper records is likely to have
been motivated by the express desire to, firstly, hinder the employees in their
endeavours to work out what they should have been paid in any particular pay
period and secondly, make it difficult for the inspector to check the records for
the purpose of investigating the complaints of employees,” he said.
“In those circumstances, I am satisfied that the (company) had an obvious
motive, namely the desire to escape detection for its unlawful treatment of
employees over a period of time.
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Fair Work Infoline: 13 13 94
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“Further, evidence before the Court supplied by former employees is that
although they were invited to write down on the weekly roster any hours worked
by them above and beyond the rostered hours, Mr Tape had a practice of
arbitrarily crossing out such entries, thereby doctoring the record …
“Given my findings as to the lack of any genuine contrition or remorse, I cannot
conclude that there is a low risk of this (company) reoffending.
“The inadequate corrective action thrown together shortly before the hearing does
not warrant the conclusion that this (company) recognises the seriousness of its
conduct or that it has a genuine desire to change its ways.
“In those circumstances, there is also a need for a significant specific deterrence
factor to be included in any penalty imposed by the Court.”
Fair Work Ombudsman NSW Director Mark Davidson says the case sends a strong
reminder to all employers to keep adequate employment records.
“Failing to keep proper time-and-wages records is clearly not just a trivial,
technical matter,” he said.
“In this case, it was the employer’s refusal to hand over records, and the very
poor state of those records we did obtain, that prompted us to bring this matter
to Court.”
CIM Hart noted that workplace laws related to record-keeping are “fundamental
to the establishment of a fair system of industrial relations where minimum
standards are maintained and can be properly policed and employees protected
against exploitation”.
The Fair Work Ombudsman has a range of user-friendly tools on its website to
assist employers understand their legal obligations to their workforce.
Employers or employees seeking assistance should contact the Fair Work Infoline
Media inquiries:
Craig Bildstien, Director Media & Stakeholder Relations. 0419 818 484.
craig.bildstien@fwo.gov.au
Ryan Pedler, Senior Adviser Media & Stakeholder Relations. (03) 9954
2561, 0434 365 924. ryan.pedler@fwo.gov.au
NEWS 
