The Fair Work Ombudsman has secured a $25,000 penalty in court against a Western Sydney construction company for a deliberate failure to comply with a Compliance Notice.
The penalty has been imposed against Clark Projects Pty Ltd, an Earlwood-based company that builds demountable and portable buildings.
The Federal Circuit and Family Court imposed the penalty in response to Clark Projects failing to comply with a Compliance Notice requiring it to calculate and back-pay a worker it engaged as a casual labourer for about seven weeks in August-September 2022.
Clark Projects back-paid the worker only after the Fair Work Ombudsman commenced legal action. The Court has also ordered Clark Projects to pay the worker superannuation owed and interest on back-payments.
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 is among our top priorities.
"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 affected worker.
A Fair Work Inspector issued a Compliance Notice to Clark Projects in June 2023 after forming a belief the company had underpaid the worker's casual ordinary rate during his employment and failed to pay him any wages for the final approximately two weeks of work he performed.
The entitlements were allegedly owed under the Building and Construction General On-site Award 2020.
In her judgment, Judge Lisa Doust found that the failure to comply with the Compliance Notice was deliberate and the penalty should operate as an appropriate deterrent to Clark Projects and other employers.
"No reasonable person receiving the regulator's correspondence and giving it the most basic level of attention could have failed to appreciate the consequences that would attach to ignoring the Compliance Notice," Judge Doust said.
"The respondent's behaviour showed a disregard of its obligations.
"As a consequence of the respondent's failure, the employee the subject of the notice was delayed by some 16 months in having the contraventions rectified. The amount the respondent ultimately paid in satisfaction of the obligations in the notice (exceeding $4,000) is a substantial amount for an employee to be [without] for such a period."
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.)
