The Fair Work Ombudsman has secured more than $44,000 in penalties against a residential building and construction company in Darwin, and one of its directors.
The Federal Circuit and Family Court imposed a $37,560 penalty against Kassiou Constructions Pty Ltd, which was based in the suburb of Winnellie, and a $6,573 penalty against one of the company directors, Ilias Kassiou.
The penalties were imposed in response to Kassiou Constructions failing to comply with a Compliance Notice requiring it to calculate and back-pay a full-time skilled labourer employed by the company between 2012 and 2021.
Mr Kassiou was penalised for his involvement in the contravention.
The Court had also previously ordered the company to calculate and back-pay the worker's entitlements still owed to him under the Compliance Notice, plus interest.
Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.
"When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties in addition to being ordered to back-pay workers," Ms Booth said.
"Improving compliance in the building and construction industry continues to be a priority for the Fair Work Ombudsman.
"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 Kassiou Constructions in September 2023 after forming a belief the worker had not been paid accrued but untaken annual leave entitlements owed at the end of his employment under the Fair Work Act's National Employment Standards.
In his judgment, Judge Anastasis Liveris found Kassiou Constructions' failure to comply with the Compliance Notice had left the worker "without receipt of any payments for more than four years after his employment ended, and without any expectation that he will receive any payments".
"I consider the circumstances of this matter to be serious. [The worker] was a long serving employee for Kassiou Constructions, which generally employed a small number of people," Judge Liveris said.
His Honour said there was a need to impose penalties to deter both the respondents as well as other employers from similar future conduct: "The penalty should be enough that it is not seen as 'the cost of doing business.'"
The company is in liquidation.
