Australian Building and Construction Commissioner v J Hutchinson Pty Ltd T/A Hutchinson Builders
At a glance
- $20,000
- 10
What happened
On 9 December 2013, during an unprotected industrial action, 10 employees of Hutchinson Builders ceased work. The company failed to deduct four hours' pay from each employee as required by s 474 of the Fair Work Act. Instead, the company paid full wages in the pay period following the action. Deductions were made months later.
What was decided
The Federal Circuit Court found 10 contraventions of s 474 and imposed a penalty of only $1,200. On appeal, the Federal Court set aside the penalty as manifestly inadequate. Applying proper deterrence principles, the Court imposed a new penalty of $20,000 ($2,000 per contravention).
What it means for employers
During unprotected industrial action, employers must deduct wages from participating employees in the first pay period following the action. Failure to do so promptly breaches the Fair Work Act. Courts apply strong deterrence principles to such breaches. Penalties should reflect the seriousness of the breach and deter similar conduct.
What it means for employees
Employees engaging in unprotected industrial action may have wages deducted. Employers must make such deductions in the first pay period following the action, not months later. Delays in making deductions may indicate employer non-compliance with the law.
Want this applied to your situation?
Reading the decision is free. FairWork Mate goes further — it reads the full case library and applies precedents like this one to your specific facts, citing the cases as it reasons. General information, not a guaranteed outcome or legal advice.
Send your details to Liquid Employment Lawyers
Liquid Employment Lawyers is a paid legal service and our referral partner, not free Fair Work advice. FairWork Mate may receive a referral fee from Liquid Legal. Tell them what has happened and a member of their team will call you back. For free general guidance, use our tools or call the Fair Work Ombudsman on 13 13 94.
Prefer to read first? About Liquid Employment Lawyers · Not sure if you need a lawyer? Read the legal help guides
Want more cases like this?
FairWork Mate tracks Fair Work Ombudsman, Fair Work Commission and Federal Court decisions across Australia. The AI advisor answers plain-English questions grounded on the full corpus — awards cited, industry, penalty amounts and affected employee counts — with a citation to the underlying decision on every answer.
FairWork Mate AI
This is one decision. Pro reads all of them.
Free case pages cite the top 250 decisions. Pro opens the full Fair Work Commission and Federal Court library, cross-references your own situation against it, and cites the decision behind every answer — plus document upload, so it can read your letter or contract line by line. 150 questions a month, cancel anytime.
Renews monthly at A$29.99 until you cancel. By continuing you agree to our Terms.
Get notified on new Fair Work cases
Free email alerts when we publish new underpayment decisions, penalty orders, and workplace law updates.