31 October 2023

The Fair Work Ombudsman has secured a $26,640 penalty in court against a commercial carpentry company on Victoria’s Mornington Peninsula.

The Federal Circuit and Family Court has imposed the penalty against NB Visionary Trading Pty Ltd, which operates out of Mornington, in Melbourne’s south-east.

The penalty was imposed in response to NB Visionary Trading failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements to two workers it employed for various periods between May-December 2020.

One of the employees was a young worker, aged 20 at the time of employment.

The Court had also previously ordered NB Visionary Trading take the action required by the Compliance Notice, which includes back-paying the workers in full, plus superannuation and interest.

Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court 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 all their lawful entitlements,” Ms Booth said.

“Employers also need to be aware that taking action to protect vulnerable workers, like young workers, is a priority for the FWO. 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 workers.

One worker was employed as a carpenter on a full-time daily hire basis while the young worker was engaged as a second-year carpenter apprentice on a full-time weekly hire basis.

A Fair Work Inspector issued a Compliance Notice to NB Visionary Trading in November 2021 after forming a belief the workers were not paid their accrued but untaken annual leave entitlements at the end of their employment, owed under the Fair Work Act’s National Employment Standards.

The inspector also formed a belief that the young worker had been underpaid wages, overtime, annual leave and public holiday entitlements under the Building and Construction General On-site Award 2020 as a result of being paid apprentice rates despite not having been validly engaged in an apprenticeship.

In her judgment, Judge Heather Riley found that the contravention was “deliberate”, and NB Visionary Trading had “shown no signs of remorse”, noting it had not back-paid the workers.

Judge Riley found that the company had displayed a “cavalier disregard” of its obligations as an employer, which warranted “a high degree of specific deterrence” as well as a need to deter other employers from similar future conduct.

“Employers cannot be under the illusion that they can ignore Compliance Notices with impunity,” Judge Riley said.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. An interpreter service is available on 13 14 50.

The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.

Small businesses can find targeted resources at the Small Business Showcase and information is available for employees and employers at our apprentices and trainees and young workers and students webpages.