The Fair Work Ombudsman has taken legal action against the operator of a Sydney-based company that designs and sells wedding dresses for failing to pay wages and benefits.

The regulator had previously launched an investigation after four employees of the George Elsissa design studio and bridal shop in Leichhardt in Sydney’s inner west came forward. The studio officially trades under the name 10 Foster Street Pty Ltd.

The four employees who turned to the FWO were employed in full-time and part-time employment for different periods between June 2015 and September 2021.

A Fair Work Inspector issued a Compliance Notice to 10 Foster Street in May 2022 after believing that employees had not been paid accrued but untaken holiday entitlements at the end of their employment to which they were entitled under the General Retail Industry Award 2020 and the National Employment Standards of the Fair Work Act.

The inspector came to the conclusion that one of the employees had not been paid the severance pay to which she was entitled when her employment contract ended.

The Fair Work Ombudsman alleges that 10 Foster Street failed, without reasonable cause, to comply with the Compliance Notice requiring it to calculate and pay back workers’ entitlements. The amount the company was required to pay to comply with the Compliance Notice was allegedly $21,604.

One employee worked in administration and marketing, while the others worked in design roles, including pattern maker, cutter, and design and sales assistant.

Two of the employees were young workers who were between 23 and 25 years old at the time of their recruitment.

Fair Work Ombudsman Anna Booth said the watchdog would continue to enforce labour laws and take companies to court if they failed to comply with lawful requests.

“If employers do not comply, we will take appropriate action to protect workers. A court can order a company to pay penalties and payments to employees,” Booth said.

“Employers must also be clear that protecting young workers is one of our top priorities. Workers who have concerns about their pay or entitlements should contact the Fair Work Ombudsman, who will provide free assistance.”

The FWO is demanding penalties in court. 10 Foster Street faces a fine of up to $33,300 for allegedly failing to comply with the Compliance Notice.

The regulator is also demanding that the company pay the amount allegedly owed to employees, plus pension payments and interest. This case is pending before the Federal Circuit and Family Court in Sydney.