Fair Work Ombudsman
Citation: FWO-2022-12-16-local-builders-direct-penalty-media-release
At a glance
- Respondent
- Local Builders Direct Pty Ltd
- Penalty
- $8,491
- Employees affected
- 1
- Awards cited
- MA000047
What happened
Local Builders Direct Pty Ltd, a home construction company based in Ravenhall, Victoria, and its sole director, Angelo Adamo, failed to fully comply with a Fair Work Ombudsman Compliance Notice. The Compliance Notice related to underpayments to a sales consultant employed between November 2020 and May 2021. The company partially back-paid the worker but did not rectify all underpayments, including superannuation and interest, as required by the notice. The Fair Work Ombudsman initiated legal action, and the worker was eventually fully back-paid.
What was decided
The Federal Circuit and Family Court imposed a $7,076 penalty on Local Builders Direct Pty Ltd and a $1,415 penalty on Angelo Adamo. The court found the company’s failure to comply with the Compliance Notice was deliberate and undermined the Fair Work Act’s enforcement framework. Judge Amanda Mansini stated the penalties should deter future non-compliance and highlight the importance of employers fulfilling their legal obligations. The Fair Work Ombudsman emphasized the consequences of ignoring Compliance Notices.
What it means for employers
Employers must fully comply with Fair Work Ombudsman Compliance Notices. Partial compliance is not sufficient. Failure to do so can result in significant penalties and damage to the company’s reputation. Employers should seek advice if unsure about their obligations.
What it means for employees
Employees who believe they have been underpaid or are experiencing issues with their entitlements should contact the Fair Work Ombudsman for free advice and assistance. The Fair Work Infoline is available on 13 13 94.
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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