A Shepparton-based caterer who reduced a worker's hours because she was pregnant has agreed to pay compensation.

The Fair Work Ombudsman said Holtham Family Pty Ltd, trading as The Soup Box, admitted it reduced the woman's hours and duties at work after she told them she was having a baby.

The woman, now aged 22, joined The Soup Box as a part-time canteen assistant and cook in February 2010.

Just before Christmas 2010, the woman told her employer she was pregnant but expected to continue her working until commencing unpaid parental leave.

But after her hours were reduced from around 25 hours a week down to three hours a week, the woman resigned, saying she had no choice because the hours were not viable.

The woman then lodged a complaint with the Fair Work Ombudsman.

The company has agreed to apologise to its former employee and pay her $2000 compensation.