Compliance Notice from FWO ordered firm to calculate, back-pay entitlements owed to worker
Procraft Group Pty Ltd and its director have been penalised with over $20,000 for failing to comply with a Compliance Notice issued by the Fair Work Ombudsman (FWO).
The Federal Circuit and Family Court imposed a penalty of $13,320 on the Melbourne-based construction company and $2,664 on its director, Bradley Busuttil, after the firm neglected to calculate and back-pay entitlements owed to a former employee.
The penalties stem from Procraft Group's failure to pay a full-time carpenter employed between February and December 2021, as well as his annual leave entitlement when his employment ended.
A Compliance Notice was issued to Procraft Group in September 2022, demanding the company rectify the payment discrepancy. The company did not comply, leading to the penalties.
In her judgment, Judge Janine Young described the breach as "deliberate" and "serious," emphasising the need for general deterrence.
"There is a need for general deterrence in this matter, to emphasise the importance of an effective compliance framework and at a sufficient level to impress upon other employers the importance of complying with the legal obligations owed to their employees," Young said.
In addition to the penalties, the Court also ordered Procraft Group to back-pay the worker $4,569, plus interest.
Fair Work Ombudsman Anna Booth said they do not tolerate deliberate failure to act on Compliance Notices.
"Employers should also be aware that taking action to improve compliance in the building and construction industry is a priority for the FWO," Booth said in a statement. "Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The FWO has been cracking down on employers who fail to act on Compliance Notices, as well as those who have been deliberately underpaying staff.
Last year, the Sushi Bay group was fined $13.7 million for underpaying migrant workers, a record-high penalty secured by the FWO.
