The Fair Work Ombudsman has commenced legal action against a baby formula manufacturing and packaging company.

Facing court is CBS International Trading Co., which has operated a baby formula factory in south-east Melbourne.

The FWO investigated after receiving requests for assistance from three workers the company employed on a full-time basis between June 2022 and May 2024.

One of the workers, a Hong Kong national, was in Australia on a temporary graduate visa at the time.

The workers were employed as machine operators to work on the company’s production line, blending and packaging baby formula products.

Fair Work Inspectors issued Compliance Notices to CBS International Trading Co. in both February and May 2024, after forming a belief the company had underpaid the three workers’ annual leave entitlements and had underpaid two of the workers’ minimum wages.

These entitlements were owed under the Food, Beverage and Tobacco Manufacturing Award 2020 and the Fair Work Act’s National Employment Standards.

The FWO alleges the company, without a reasonable excuse, failed to comply with the Compliance Notices, which required it to calculate and back-pay the workers’ entitlements.

It’s alleged the amounts the company was required to pay to comply with the Compliance Notices totalled $13,294, with individual amounts ranging from $3294 to $6166.

FWO Anna Booth says the regulator will continue to enforce workplace laws and take businesses to court where lawful requests aren’t complied with.

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers,” she says.

“Employers should also be aware that taking action to protect migrant workers is a priority for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO is seeking penalties against CBS International Trading Co. in court for the alleged failure to comply with two Compliance Notices. The company faces penalties of up to $93,900 per breach.

The regulator is also seeking an order requiring the company to comply with the Compliance Notices, including rectifying any amount owed in full, plus interest and superannuation.