Sydney childcare centre paid staff just $2 an hour: ombudsman

The operator of a childcare centre in western Sydney will face court for allegedly paying his staff between $2.15 and $3.98 an hour.

The Fair Work Ombudsman has launched legal proceedings against Mark Edward Myles for allegedly underpaying 16 childcare workers almost $362,000 at the Bollygum Childcare Centre, which went into liquidation and closed earlier this year.

Seven of the former staff were under the age of 21 and some were trainees, Fairfax Media reports.

Documents filed with the Federal Circuit Court say Mr Myles, who is also principal of Winmalee Public School, paid his staff wages that did not cover minimum hourly rates, overtime, annual leave entitlements or a laundry allowance.

The starting wage for childcare workers reportedly is $18 an hour.

Mr Myles faces fines of up to $10,200 for each breach under the Fair Work Act. The Fair Work Ombudsman will seek a court order so any fines are paid to the staff in lieu of reimbursements for the amount they were allegedly underpaid.