The Federal Circuit and Family Court has penalised claims management firm Alliance Property Consultancy $19,000 in proceedings lodged by the Fair Work Ombudsman.

The Ombudsman commenced action against the Brisbane-based business after it failed to follow up with a Compliance Notice ordering it to calculate and back-pay a full-time sales employee.

A Fair Work Inspector had issued the Compliance Notice in August last year following an investigation, after the employee sought assistance from the Ombudsman for underpayment of his accrued but untaken annual leave entitlements.

Fair Work Ombudsman Sandra Parker says business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The $19,000 penalty includes a $2000 fine against Alliance’s former sole director Adam Killackey, of which $1988.44 would be paid to the employee at the request of the Ombudsman.