Fair Work Ombudsman applies for court order to wind up Melbourne food business

The Fair Work Ombudsman has taken action in the Federal Court to wind up a Melbourne café that underpaid its staff and then failed to pay the Ombudsman's fines.

The Ombudsman wants to enforce back-payment and penalty orders made against Giuseppe De Simone – who owns Cape Café on Melbourne's Brunswick Street and his private company Compumark Pty Ltd.

The court found that two casual kitchen hands had been underpaid $7,061 and $1,575 in wages and superannuation and Magistrate Kate Hawkins fined De Simone $19,800 and Compumark $99,000 and ordered back-pay for the workers.

However, the workers involved have still not been back-paid and Compumark and De Simone have not paid the penalties imposed on them.

The Fair Work Ombudsman's action in the Federal Court is as a supporting creditor in proceedings that are aimed at securing a Court Order for Compumark to be wound up if the company is insolvent by not complying with the back-payment and penalty orders.

Fair Work Ombudsman Nicholas Wilson said if Compumark is wound up, a liquidator will examine the company to determine whether it has any assets that can be liquidated to meet the back-payment and penalty orders.

"The Fair Work Ombudsman is committed to taking proactive action to ensure that Court Orders made in response to our litigations are complied with," Mr Wilson said.

The case was heard in Melbourne's Federal Court yesterday and the Court reserved its decision.

SmartCompany was unable to contact Compumark and Cape Café prior to publication.

Source: Smart Company, 11 May 2012