The Federal Circuit and Family Court has imposed an $18,658 penalty against L.E.C. Builders & Designers Pty Ltd, based at Carrum Downs, and a $3,396 penalty against the company’s sole director, Luke John Elliot.
The penalties were imposed due to L.E.C. Builders & Designers failing to comply with a compliance notice that required calculation and back payment of entitlements to a young, full-time construction worker the company had employed. Mr Elliot was involved in the breach.
In addition to the penalty, the court has ordered L.E.C. Builders & Designers to pay $22,054.50 in compensation to the worker, plus interest, for loss suffered by the worker because of the failure to comply with the compliance notice. This amount reflects the amount the employer would have paid if it had complied with the compliance notice.
Fair Work Ombudsman Sandra Parker said business operators that fail to act on compliance notices need to be aware they can face court-imposed penalties on top of having to back pay workers.
“When compliance notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.