The Fair Work Ombudsman has secured more than $40,000 in penalties and back-payment orders in court against the operators of a residential construction business in Melbourne.
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, have each been penalised $7,000.
The Federal Circuit and Family Court imposed the penalties in response to Mr Pether failing to comply with a Compliance Notice requiring him to back-pay two workers he employed as apprentice carpenters for various periods between May 2018 and December 2019, and failing to issue the workers with pay slips. Mr Rattana was involved in the breaches.
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.
In addition to the penalties, the Court has ordered Mr Pether to back-pay the two workers a total of $26,330.22, plus 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 on top of having to comply with the Compliance Notice.
"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.
"Employers also need to be aware that taking action to improve compliance in the building and construction sector and protect young workers are among our top priorities."
Ms Booth also said that failing to issue employees with pay slips was unacceptable.
"Pay slips provide employees with the clarity they need about their pay, and we expect every employer to follow laws requiring them to provide accurate pay slips to their employees within one business day of them being paid," Ms Booth said.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The Fair Work Ombudsman investigated the matter after receiving a request for assistance from the two affected workers.
A Fair Work Inspector issued a Compliance Notice to Mr Pether in May 2022 in response to Mr Pether underpaying the workers' minimum wages and overtime entitlement and failing to reimburse training costs, owed under the Building and Construction General On-site Award 2010; and underpaying annual leave entitlements, owed under the Fair Work Act's National Employment Standards.
Judge Amanda Mansini found that failing to issue pay slips was "serious" conduct, saying it "prevents an employee from monitoring their pay and conditions and frustrates the (Fair Work Ombudsman) in its investigative role".
Judge Mansini found that the failure to fully comply with the Compliance Notice was deliberate and the fact that entitlements remained outstanding elevated the seriousness of the contravention.
Judge Mansini found there was a need to impose penalties to deter Mr Pether and Mr Rattana from future contraventions.
"I am also persuaded that there is a need for general deterrence in the present matter, to emphasise the importance of an effective compliance framework, and at a sufficient level to impress upon other employers in the building industry the importance of complying with the legal obligations owed to their employees and that non-compliance will be penalised," Judge Mansini said.
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.)
