Construction boss faces $50k fine for dodging worker pay
A Sydney-based construction company is facing legal actions and over $50,000 fine following allegations of wage theft.
The Fair Work Ombudsman (FWO) has launched legal action against a south-western Sydney housing construction company and its sole director for allegedly not paying a casual worker.
A Fair Work inspector issued a compliance notice to Veens Group Pty Ltd in June 2023 and the company’s sole director, Dasi Shi, after forming a belief that it had not paid a young casual migrant worker.
The worker, a Chinese national then aged 20 on a student visa, was employed casually by the construction company for eight days in October 2022.
Migrant workers, who usually do not know their rights, are often more at risk of wage theft, with the regulator filing 146 litigations against employers involving visa holder workers, which amounted to $23 million in penalties, in the seven financial years to June 2024.
The watchdog stated that the worker was not paid for work performed under the Building and Construction General On-Site Award 2020, which entitled them to minimum casual rates.
The FWO said that Veens Group Pty Ltd and Shi failed to comply with the law, which required them to calculate and backpay the worker’s entitlements.
Without a “reasonable excuse”, Veens Group Pty Ltd is now facing court for allegedly failing to comply with the compliance notice, risking a fine up to $46,950.
The sole director, Shi also faces a penalty of up to $9,390.
Additionally, the watchdog requires an order requiring the company to pay the alleged outstanding amount to the worker, plus interest.
Fair Work Ombudsman Anna Booth said the watchdog will continue to protect workers and take businesses to court if they do not comply with the law.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers,” Booth said.
“Employers should also be aware that taking action to protect young workers and migrant workers, and improve compliance in the construction industry, are priorities for the FWO,” she concluded.