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NSW construction company, director fined $18k over alleged wage theft
The Fair Work Ombudsman has secured $18,950 in penalties against a housing construction company and its director over an alleged breach affecting a migrant worker.
The penalties came after Veens Group failed to abide by a compliance notice requiring the company to back-pay a construction worker it employed.
Fair Work said the company’s director, Dasi Shi, was involved in the contravention.
The worker, a Mandarin-speaker then aged 29, was in Australia on a student visa at the time he was employed.
Following the employee’s request for assistance from Fair Work, an inspector issued a compliance notice to Veens Group in June 2023, on the belief that the company had not paid the worker for eight days of casual work he had done the year prior.
Under the Building and Construction General On-Site Award 2020, the worker was entitled to be paid minimum casual wages.
Before Fair Work commenced legal action, Veens Group back-paid the worker $300, and then paid the remaining $1,577 only after legal action was taken.
As a result of the alleged breach, the Federal Circuit and Family Court has imposed a $15,800 penalty against Veens Group and a $3,150 penalty against Shi.
Judge Lisa Doust found the Fair Work Ombudsman had repeatedly tried to secure compliance, but Veens Group’s failure to seriously engage had warranted the commencement of legal proceedings.
She said that Shi had admitted in court that he had not taken the $1,877 underpayment seriously, “because the amount was not that big”.
However, Judge Doust said the amount was significant for a worker dependent upon remuneration at award rates.
Judge Doust found there was a need to impose penalties that deterred Veens Group, Shi and other employers from similar misconduct in future.
“The penalty must be sufficient to send a message that compliance notices impose serious obligations, and the failure to respond to them carries serious consequences,” Judge Doust said.
“Unfortunately for the respondents, this matter must serve as an object lesson for other employers that they cannot fail to treat compliance notices with the seriousness the statutory scheme intends.”
According to the Fair Work Ombudsman, Anna Booth, companies that ignore compliance notices should be aware that they could face court-imposed penalties on top of having to pay workers.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and to make payments to workers,” she said.
She also warned employers that Fair Work was prioritising taking action to protect migrant workers and improve compliance in the construction sector.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance,” Booth concluded.