The Fair Work Ombudsman has secured a $12,652 penalty in court against the former operator of a tiling business in the Central Coast region of New South Wales.
The Federal Circuit and Family Court has imposed the penalty against sole trader Daniel Patrick Sullivan, whose business traded as T for Tiling.
The penalty was imposed in response to Mr Sullivan failing to comply with a Compliance Notice requiring him to calculate and back-pay entitlements to a worker he employed as a casual tiling labourer between April 2020 to July 2021, and for failing to issue the worker pay slips.
The Court has also ordered Mr Sullivan to take the steps that were required to comply with the Notice, including calculating and paying the outstanding entitlements to the worker, plus superannuation and interest.
Judge Nicholas Manousaridis found that Mr Sullivan's failure to issue pay slips and comply with the Compliance Notice was "deliberate" and a "serious disregard" of his obligations under the Fair Work Act.
Judge Manousaridis found that the amount still owing to the worker was "significant" and that the worker was paid "only around 71% of the amount he ought to have been."
"This is significant; and its significance is magnified by Mr Sullivan not having paid the difference," Judge Manousaridis said.
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.
"Pay slips provide employees with the clarity they need about their pay, and we expect every employer to follow laws requiring them to be provided to an employee within one working day of each pay day.
"Employers should also be aware that taking action to improve compliance across the building and construction sector 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 investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to Mr Sullivan in July 2022 after forming a belief he had paid the worker a flat hourly rate of $20, which was insufficient to cover the worker's minimum wages, casual loading, overtime rates and Sunday penalty rates.
The inspector believed these entitlements were owed under the Building and Construction General On-site Award 2010 and 2020.
Judge Manousaridis said there was a need to impose a penalty at the "higher end of the scale" to deter Mr Sullivan and other employers "from not complying or considering not to comply" with their obligations under the Fair Work Act.
