The Fair Work Ombudsman has secured $20,553 in penalties and back-pay orders in court against a Melbourne-based residential building and construction company and its director.
The Federal Circuit and Family Court has imposed a $13,320 penalty against Procraft Group Pty Ltd and a $2,664 penalty against the company's sole director, Bradley Busuttil.
The penalties were imposed in response to Procraft Group failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements owing to a worker it employed as a full-time carpenter between February and December 2021.
Mr Busuttil was involved in the contravention.
The Court has also ordered the company to back-pay the worker $4,569 still owed to him under the Compliance Notice, plus interest.
Fair Work Ombudsman Anna Booth said employers that fail to act on Compliance Notices need to be aware they can face substantial penalties in court on top of having to back-pay workers.
"We do not tolerate the deliberate failure to act on Compliance Notices, and we will continue to take legal action to protect employees' hard-earned wages," Ms Booth said.
"Employers should also be aware that taking action to improve compliance in the building and construction industry is a priority for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance," Ms Booth said.
The FWO investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to Procraft Group in September 2022 after forming a belief the worker had not been paid accrued but untaken annual leave entitlements when his employment ended, owed under the Fair Work Act's National Employment Standards.
In her judgment, Judge Janine Young found Procraft Group and Mr Busuttil's failure to comply with the Compliance Notice resulted in a "loss" to the worker, who has still not received the amount owing to him under the Compliance Notice almost three years since his employment ended and more than two years after the Compliance Notice was issued.
Her Honour also found the breach "deliberate" and "serious" and that the company and Mr Busuttil had "demonstrated a disregard for their obligations" under the Fair Work Act.
In light of this, Judge Young said there was a need to impose penalties to deter both respondents as well as other employers from similar future conduct.
"There is a need for general deterrence in this matter, to emphasise the importance of an effective compliance framework and at a sufficient level to impress upon other employers the importance of complying with the legal obligations owed to their employees," Judge Young said.
