The Fair Work Ombudsman has commenced legal action against the operator of a residential building and construction business in western Sydney.
Facing court are Klinsic Constructions Pty Limited, based in Cranebrook, and one of its directors, John Klinsic.
The regulator began an investigation after receiving a request for assistance from a worker who had been employed by Klinsic Constructions as a carpenter between January 2019 and July 2021.
A Fair Work Inspector issued a Compliance Notice to Klinsic Constructions in December 2021 after forming a belief that the worker had not been paid all entitlements owed under the Building and Construction General Onsite Award 2010, the Building and Construction General Onsite Award 2020 and the Fair Work Act.
The inspector formed a belief that the worker was paid an hourly rate of $23.10, resulting in the underpayment of his minimum hourly rate.
The inspector also formed a belief that the worker was underpaid redundancy entitlements and payment-in-lieu-of-notice at the end of his employment.
The Fair Work Ombudsman alleges Klinsic Constructions, without reasonable excuse, failed to comply with the Compliance Notice, which required it to calculate and back-pay the worker's entitlements. It is alleged Mr Klinsic was involved in the contravention.
Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take business operators to court when they fail to act on Compliance Notices.
"Where employers do not comply, we are prepared to take appropriate legal action to ensure employees receive their lawful entitlements. A court can order a business to pay penalties on top of having to back-pay workers," Ms Parker said.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance."
The Fair Work Ombudsman is seeking penalties. Klinsic Constructions faces a penalty of up to $33,300 and Mr Klinsic faces a penalty of up to $6,660 for allegedly failing to comply with the Compliance Notice.
FWO is also seeking an order for Klinsic Constructions to comply with the Compliance Notice, which includes rectifying any underpayments in full, plus interest and superannuation.
A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 25 March 2022.
