The Fair Work Ombudsman has commenced legal action against the operators of a residential construction business in Melbourne.
Facing court are sole trader Marsdon Pether, operator of the business trading as 'FTP Construction', and his father Nat Rattana, who is also involved in operating the business.
The regulator investigated after receiving a request for assistance from two workers Mr Pether employed as apprentice carpenters for various periods between May 2018 and December 2019.
One of the workers, aged 21 at the time, was engaged by Mr Pether as a full-time labourer for two weeks at the start of his employment period, before starting his apprenticeship.
A Fair Work Inspector issued a Compliance Notice to Mr Pether in May 2022 after forming a belief Mr Pether had underpaid the two workers' minimum wages and overtime entitlements, and failed to reimburse training costs, owed under the Building and Construction General On-site Award 2010.
The inspector also formed a belief that Mr Pether failed to pay the workers their accrued but untaken annual leave entitlements at the end of their employment, owed under the Fair Work Act's National Employment Standards.
The Fair Work Ombudsman alleges Mr Pether, without a reasonable excuse, failed to comply with the Compliance Notice, which required him to calculate and back-pay the workers' entitlements.
It is alleged that the amount Mr Pether was required to pay to comply with the Compliance Notice was $31,596. It is alleged the workers have been back-paid only a fraction of this amount.
Mr Pether allegedly also breached pay slip laws.
It is alleged that Mr Rattana was involved in the contraventions.
Fair Work Ombudsman Anna Booth said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.
"Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers," Ms Booth said.
"Improving compliance in the building and construction industry and protecting young workers are among our top priorities.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The FWO is seeking penalties in court. Mr Pether and Mr Rattana each face a penalty of up to $6,660 for the alleged failure to comply with the Compliance Notice. In addition, Mr Pether and Mr Rattana each face a penalty of up to $12,600 for the alleged breach of pay slip laws
The regulator is seeking orders for Mr Pether to pay the amounts allegedly owing to the workers, plus interest.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 12 November 2024.
