Fair Work Ombudsman
Citation: FWO-2022-11-28-krown-homes-litigation-media-release
At a glance
- Penalty
- $33,300
- Employees affected
- 1
- Awards cited
- MA000046
What happened
The Fair Work Ombudsman commenced legal action against Krown Homes Pty Ltd, a residential building company based in Canberra, and its director, Ismail Cetinkaya. The action followed a request for assistance from a former carpenter employed between September 2020 and June 2021. A Fair Work Inspector issued a Compliance Notice in August 2021 regarding alleged underpayment of entitlements under the Building and Construction General On-site Award 2020 and the National Employment Standards. Krown Homes allegedly failed to comply with the notice, and Mr Cetinkaya is alleged to have been involved. The carpenter was allegedly owed payment-in-lieu-of-notice and redundancy entitlements.
What was decided
The Federal Circuit and Family Court found Krown Homes Pty Ltd and its director, Ismail Cetinkaya, contravened the Fair Work Act by failing to comply with the Compliance Notice. The court ordered Krown Homes to calculate and pay outstanding superannuation. The company back-paid other entitlements after the Fair Work Ombudsman commenced legal action. The Fair Work Ombudsman is seeking penalties against Krown Homes (up to $33,300) and Mr Cetinkaya (up to $6,660), plus an order for Krown Homes to rectify the alleged underpayment, including interest and superannuation.
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 rectify underpayments, plus interest and superannuation. The case highlights the importance of ensuring employees receive all entitlements under awards and the National Employment Standards.
What it means for employees
Employees who believe they have not received all their entitlements should contact the Fair Work Ombudsman for free assistance. Interpreter services are available.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/november-2022/20221128-krown-homes-litigation-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →