Workplace Ombudsman Launches Prosecution Of Nsw Manufacturer To Recover Massive Underpayments

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3rd April 2008, 12:30pm - Views: 1040


Media Notification

Date: 3 April 2008


Workplace Ombudsman Launches Prosecution of

NSW Manufacturer to Recover Massive


Australia’s Workplace Ombudsman will fight to recover more than

$103,000 for nine former employees of a Gloucester floor coverings

manufacturer after the company failed to pay out full redundancy

entitlements to its employees.

Federal Workplace Ombudsman Nicholas Wilson said the prosecution

against Planet Floorcoverings and its director Michael Pairidis, in the NSW

Chief Industrial Magistrates Court, was initiated after several attempts at

voluntary compliance had proved unsuccessful.

The Workplace Ombudsman’s investigation has found that in June 2006,

nine employees, who are all over 45 years old, were given a month’s

notice that the Gloucester worksite would be closing and that they would

be losing their jobs.

“ We allege that the workers were all entitled to severance pay – and we

say the company has failed to make those payments and has acted

unlawfully in its conduct towards its employees.’’ Mr Wilson said

``The affected employees worked in various capacities producing timber

floorboards and had been with the company between three and six


``A redundancy such as this often puts significant strain on both workers

and their families,’’ Mr Wilson said.

``This hardship is compounded even further when employees don’t

receive their lawful entitlements which are owing to them after being


The Workplace Ombudsman’s investigation found that during August last

year the company paid some initial amounts to the employees as part

payment of their redundancy entitlements but has failed to make any

further payments since.

``The outstanding redundancy entitlements range from $6,000 to more

than $19,000 per employee,’’ Mr Wilson said.


``The total is a staggering $103,010 and we will be seeking full recovery

of the money owed, interest and penalties.’’ Mr Wilson said.

Media Inquiries:

Suzana Talevski – Workplace Ombudsman Media Adviser

Ph: 0434 365 924 or email:

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