The Fair Work Ombudsman has secured a penalty in court against the operator of a business in Logan Village, Queensland that carries out services including custom fabrication and mobile welding.
The Federal Circuit and Family Court has imposed a $5,000 penalty against Jame Robert McIvor, who operates a business trading as Mack Engineering & Site Services.
The penalty was imposed in response to Mr McIvor failing to comply with a Compliance Notice requiring him to calculate and back-pay entitlements to a worker he employed on a casual basis as a welder/labourer for just over two weeks in January 2021.
The court has also ordered Mr McIvor to comply with the Compliance Notice by back-paying the worker in full, plus superannuation and interest.
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.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The FWO investigated after receiving a request for assistance from the affected worker.
The Compliance Notice was issued in May 2021 after a Fair Work inspector formed a belief that the worker was underpaid casual minimum wages, overtime rates and weekend and public holiday penalties owed under the Manufacturing and Associated Industries and Occupations Award 2020.
In imposing the penalty, Judge Salvatore Vasta said that “the deterrence factor looms large”.
“In this case it is difficult to imagine a more blatant example of a refusal to comply with the compliance notice. The sum may, in some ways, be seen as a minor amount but it is not a minor amount to the employee,” Judge Vasta said.
“It is important to drive home the necessity for employers to comply with a compliance notice.”
