The Fair Work Ombudsman has secured a $6,000 penalty in court against the former operator of a construction business in Melbourne.
The Federal Circuit and Family Court imposed the penalty against sole trader Daniel Paul O'Loughlin, who operated Torco Constructions.
The penalty was imposed in response to Mr O'Loughlin's failure to comply with a Compliance Notice, which required him to calculate and back-pay a young worker's entitlements.
Mr O'Loughlin employed the young worker as a full-time construction worker from June to October 2023. The worker was aged 21 at the time.
In addition to the penalty, the Court had previously ordered Mr O'Loughlin to take the actions required by the Compliance Notice, including rectifying any underpayments, plus superannuation and interest.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties.
"When Compliance Notices are not followed, we will continue to take legal action," Ms Booth said.
"Employers should be aware that taking action to protect young workers, who may be vulnerable, and improving compliance in the building and construction sector are priorities for us.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The FWO investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to Mr O'Loughlin in February 2024 after forming a belief the worker did not receive his minimum wages for ordinary hours and overtime, owed under the Building and Construction General On-site Award 2020.
The inspector also formed a belief that the worker was not paid his accrued but untaken annual leave entitlements at the end of his employment, owed under the Fair Work Act's National Employment Standards.
In her judgment, Judge Amanda Mansini said by not complying with the Compliance Notice in almost two years, Mr O'Loughlin's behaviour could only be characterised as "deliberate, ongoing and demonstrative of a disregard for his obligations under the Act".
Judge Mansini found there was a need to impose a penalty to deter Mr O'Loughlin and other employers from similar conduct in future.
"It is well recognised that younger employees, as here, are more vulnerable to underpayment and such exploitation ought to be deterred," Judge Mansini said.
"I am also persuaded that there is a need for general deterrence in the present matter ... to impress upon other employers, particularly in the building and construction industry, the importance of complying with the legal obligations owed to their employees.
"Failure to comply with a statutory compliance notice issued by the Fair Work Ombudsman is serious and operates contrary to the opportunity to resolve matters without need for litigation. Such conduct ultimately serves to undermine the Act's enforcement framework and the safety net of entitlements it is designed to protect."
The Fair Work Ombudsman recovered nearly $16.5 million in unpaid entitlements for employees across the entire building and construction sector between 10 November 2022 and 30 June 2025. (The FWO resumed responsibility for regulating Fair Work Act compliance in the commercial building and construction sector on 10 November 2022.)
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
