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Media Notification
Date: 3 April 2008
Workplace Ombudsman Launches Prosecution of
NSW Manufacturer to Recover Massive
Underpayments
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
years.’’
``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
sacked.’’
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.
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``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: suzana.talevski@wo.gov.au
NEWS 
