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The former operator of the Farmers Arms Hotel in Newry, Victoria, has been penalised after failing to back-pay a worker.

Gary Robert Williams and his now-liquidated company Yorktor Pty Ltd appeared in the Federal Circuit Court to address the matter, which included a breach of the Fair Work Act.

An employee worked as a casual bar attendant and kitchen hand at the hotel and submitted requests for assistance to the Fair Work Ombudsman in 2019.

After an investigation, inspectors found the worker had been underpaid minimum wages and penalty rates for weekend, public holiday and evening work under the relevant Award.

Inspectors issued a compliance notice requiring the company to calculate and back-pay outstanding amounts to the worker, however the notice was ignored.

In his decision, Judge Alister McNab referred to general deterrence being of particular importance due to the compliance record of the accommodation and foodservices industry.

Judge McNab ordered $3,500 penalties against Williams be paid to the former employee.