THE Fair Work Ombudsman has called off a planned legal fight with a Newcastle day care after the business strongly refuted allegations of underpayment.
In late August the employment watchdog issued a press release confirming it had begun proceedings against The Little Unicorn on Honeysuckle Pty Ltd, saying it began investigating after a casual worker employed between June 2021 and May 2022 alleged she went unpaid for two weeks of shifts.
The business argued it had rectified the problem immediately after becoming aware of it following misdirected correspondence from the ombudsman.
A Little Unicorn spokeswoman on August 24 said the employee had been repaid in full after letters from the watchdog had been sent to an outdated address.
The Fair Work Ombudsman declined to comment further at the time when asked about those allegations, arguing the matter was before the courts.
On August 31, the ombudsman's office confirmed the court action was discontinued.
In its earlier statement, the ombudsman said it had issued the company a compliance notice in December, and was seeking court orders.
Acting ombudsman Mark Scully said on August 24 the regulator was in general willing to take businesses to court where necessary.
"A court can order a business to pay penalties in addition to back-paying workers," Mr Scully said.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The case had been listed in Sydney's Federal Circuit and Family Court for September 7.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
An interpreter service is available on 13 14 50.
