Fair Work Ombudsman
Citation: FWO-2022-07-04-innovative-aluminium-penalty-media-release
At a glance
- Respondent
- Innovative Aluminium Pty Ltd
- Penalty
- $14,820
- Employees affected
- 1
What happened
Innovative Aluminium Pty Ltd, a Melbourne-based company that manufactures aluminium windows and doors, and its sole director, the Respondent, have been penalised by the Federal Circuit and Family Court. The company failed to comply with a Compliance Notice regarding back-payments owed to a project manager employed between January 2019 and September 2019. The Applicant requested assistance from the Fair Work Ombudsman. The company back-paid $4,801 after legal action commenced.
What was decided
The Federal Circuit and Family Court imposed a $12,500 penalty on Innovative Aluminium Pty Ltd and a $2,320 penalty on the Respondent. The court rejected his claim that he believed he had a mutual agreement with the Applicant to forgo payment in lieu of notice. The judge stated that ignorance of workplace laws is not an excuse. The penalties are intended to deter similar conduct and highlight the importance of complying with Compliance Notices and paying employee entitlements.
What it means for employers
Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Ignoring these notices can result in significant court-imposed penalties. Employers must be aware of their obligations to pay employee entitlements, even if they believe an agreement exists to forgo them.
What it means for employees
Employees who believe they have not received their correct pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance. Employees are entitled to payment in lieu of notice and cannot be asked to waive this right.
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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 →