Firm failed to completely backpay two employees before FWO's legal action commenced
A Brisbane-based structural engineering company and its director received a combined penalty of $18,500 for failing to follow a Compliance Notice from a Fair Work Inspector.
The inspector handed the notice to Incode Engineers Pty Ltd after they concluded that the company underpaid the wages, annual leave entitlements, as well as payment-in-lieu-of-notice-of-termination entitlements of its workers.
The Compliance Notice ordered the company to backpay a full-time engineer and a part-time administration officer who were hired between May and August 2021.
Incode Engineers took steps to rectify some of the underpayments owed to one of the affected workers before the Fair Work Ombudsman (FWO) commenced legal action.
However, the underpayments for the second worker remained unresolved until after the FWO's legal action began.
Penalties imposed after underpayments
The Federal Circuit and Family Court imposed a penalty of $16,500 against Incode Engineers for failing to comply with the Compliance Notice.
It also imposed a $2,000 penalty against its director, Thomas Marxson, for his involvement in the contravention.
Fair Work Ombudsman Anna Booth warned employers that operators who fail to abide by the Compliance Notices may face penalties in court.
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"When Compliance Notices are not followed, we will continue to take legal action. Employers who fail to act on these notices risk substantial penalties and back-pay orders," Booth said in a statement.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."