Fair Work Ombudsman
Citation: FWO-2022-03-22-klinsic-constructions-litigation-media-release
At a glance
- Respondent
- Klinsic Constructions Pty Limited
- Penalty
- $33,300
- Employees affected
- 1
- Awards cited
- MA000017, MA000018
What happened
The Fair Work Ombudsman has taken legal action against Klinsic Constructions Pty Limited, a residential building and construction business in Cranebrook, NSW, and its director, the Respondent. The action follows a worker's request for assistance and an investigation revealing potential underpayment of entitlements. The Applicant was employed between January 2019 and July 2021. A Fair Work Inspector issued a Compliance Notice in December 2021, alleging the Applicant was paid an hourly rate of $23.10, resulting in underpayment of his minimum hourly rate, redundancy entitlements, and payment-in-lieu-of-notice. The company failed to comply with the notice.
What was decided
The Fair Work Ombudsman is seeking penalties against Klinsic Constructions and the Respondent for failing to comply with the Compliance Notice. Klinsic Constructions faces a penalty of up to $33,300, and the Respondent faces a penalty of up to $6,660. The Fair Work Ombudsman also seeks an order for Klinsic Constructions to rectify any underpayments, including interest and superannuation. A directions hearing is scheduled for March 25, 2022, in the Federal Circuit and Family Court in Sydney. The Ombudsman emphasises enforcement of workplace laws and legal action against non-compliant businesses.
What it means for employers
Employers must ensure they are paying employees all lawful entitlements, including minimum wages, redundancy pay, and payment-in-lieu-of-notice. Failure to comply with Compliance Notices issued by the Fair Work Ombudsman can result in significant penalties and orders to back-pay entitlements.
What it means for employees
Employees who believe they have been underpaid or are not receiving their full entitlements should contact the Fair Work Ombudsman for free advice and assistance. Interpreter services are available.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →