Fair Work Ombudsman
Citation: FWO-2024-02-28-jacz-penalty-media-release
At a glance
- Respondent
- JACZ Holdings Pty Ltd
- Penalty
- $19,800
- Employees affected
- 1
What happened
JACZ Holdings Pty Ltd, a residential building company based in Heidelberg Heights, 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 issued by the Fair Work Ombudsman. The notice required back-payment of entitlements to a young apprentice bricklayer employed between March 2020 and January 2022. The apprentice was underpaid minimum apprentice rates and had training fees not reimbursed, breaching the Building and Construction General On-site Award 2010 and 2020. The Fair Work Ombudsman investigated after a request for assistance from the Applicant.
What was decided
The Federal Circuit and Family Court imposed a penalty of $16,500 on JACZ Holdings Pty Ltd and $3,300 on the Respondent. The court ordered JACZ Holdings to rectify the underpayment, including interest and superannuation, as per the Compliance Notice. The court noted the Respondent's personal difficulties but found no evidence they impacted the company's failure to comply. The court also highlighted the lack of evidence demonstrating changes to company systems to prevent future non-compliance. The decision aims to deter similar conduct by other employers.
What it means for employers
Employers must take Compliance Notices from the Fair Work Ombudsman seriously and act on them promptly. Failure to do so can result in substantial penalties and back-pay orders. Companies should review their payroll systems and practices to ensure compliance with relevant awards and legislation, and implement measures to prevent underpayments.
What it means for employees
Employees who believe they have been underpaid or are not receiving correct entitlements should contact the Fair Work Ombudsman for free advice and assistance. The Fair Work Ombudsman provides resources and support for employees to understand their workplace rights.
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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 →