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Two Melbourne construction business operators have been fined a total of more than $65k after failing to pay workers their full lawful entitlements.
The Federal Circuit and Family Court imposed the penalties against LROC Builders and its director and sole-owner, Lachlan Robert Oliver, who also operated L.R. Oliver Carpentry as a sole trader.
LROC Builders and L.R. Oliver Carpentry were based at the same location in Carrum Downs.
Following the breaches, the operators were issued Compliance Notices, which required them to back-pay entitlements owed to four carpenters employed for various periods between December 2018 and April 2022.
However, the businesses failed to comply with the notices, and LROC Builders was penalised $53,625, while Oliver was penalised $13,722.
Additionally, the court has ordered that part of the penalties be paid to the affected workers to cover the total outstanding entitlements of $47,243, with individual amounts ranging from $855 to $25,218.
The FWO said it investigated after receiving requests for assistance from the affected workers.
“Three of the workers were employed as carpenters by LROC Builders and one was employed directly by Mr Oliver to work at L.R. Oliver Carpentry,” it said.
A Compliance Notice was issued to Oliver in April 2022, while Compliance Notices were sent to LROC Builders in December 2022 and March 2023, following Fair Work’s suspicion that the workers had not been paid their full lawful entitlements.
The FWO believed the workers were underpaid for minimum wages, overtime entitlements, fare and travel allowances, leave entitlements, and public holiday pay.
In her judgment, Judge Catherine Symons found the contraventions by LROC Builders and Oliver to be deliberate, and they had shown no contrition.
She believed the actions of LROC Builders and Oliver were unhelpful and obstructive at times, indicating a failure to carry out their responsibilities to pay employees in accordance with the law.
Furthermore, she saw a need to impose penalties to deter them from similar future conduct.
Fair Work Ombudsman Anna Booth stressed that employers who do not act on Compliance Notices need to be aware that they could face court-imposed penalties.
“Employers also need to be aware that taking action to protect young workers, which can often include apprentices, and improving compliance in the building and construction industry are among our top priorities,” she said.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance,” Booth concluded.
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