Fair Work Ombudsman
Citation: FWO-2022-05-10-local-builders-litigation-media-release
At a glance
- Respondent
- Local Builders Direct Pty Ltd
- Penalty
- $797
- Employees affected
- 1
What happened
The Fair Work Ombudsman has taken legal action against Local Builders Direct Pty Ltd, a home construction company based in Ravenhall and Diggers Rest, Victoria, and its sole director and shareholder, the Respondent. The action follows a request for assistance from the Applicant employed between November 2020 and May 2021. A Fair Work Inspector issued a Compliance Notice in July 2021, alleging underpayment of minimum wages, payment in lieu of notice, and annual leave entitlements. While the company back-paid $796.70, over $500 remains outstanding.
What was decided
The Fair Work Ombudsman is seeking penalties against Local Builders Direct and the Respondent for allegedly failing to comply with the Compliance Notice. The company faces a maximum penalty of $33,300, and the Respondent faces a penalty of up to $6,660. The FWO also seeks an order for the company to rectify the alleged underpayments, including superannuation and interest. A directions hearing is scheduled for June 2022.
What it means for employers
Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Failure to do so can result in significant penalties and orders to back-pay entitlements, plus superannuation and interest. Promptly addressing and rectifying any identified underpayments is crucial.
What it means for employees
Employees who believe they have been underpaid or are concerned about their 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 →