Wage theft: Former construction business faces court
The Fair Work Ombudsman has launched legal action against former construction business operators in Sydney’s south-west for failing to pay the final wages of a visa-holder worker.
The watchdog has commenced legal action against Kam the Handyman and Landscapes Pty Ltd, which operated Kams Home Transformations, and the company’s sole director, Kamal Taha, following the belief it had failed to pay workers’ wages.
The regulator investigated after receiving a request for assistance from a skilled regional visa holder employed as a full-time construction worker between September 2022 and February 2023.
In November 2023, a Fair Work inspector issued a compliance notice after determining that the company had not paid the worker for the last two weeks of work he completed.
Following the Building and Construction General On-Site Award 2020, the inspector concluded that the worker was entitled to receive minimum wages.
Additionally, the inspector said that, per the National Employment Standards of the Fair Work Act, the worker should have received the unused annual leave at the end of his employment.
Kam the Handyman and Landscapes Pty Ltd was allegedly required to pay $3,599 to observe the compliance notice.
The watchdog is now seeking reparation in court for the alleged failure to comply with the compliance notice, with Kam the Handyman and Landscapes Pty Ltd facing a penalty of up to $46,950, while Taha faces a penalty of up to $9,390.
The regulator also seeks requests that the company pay the worker the alleged outstanding amount, plus superannuation and interest.
Fair Work Ombudsman, Anna Booth, said the regulator will continue to protect migrant workers and ensure that construction companies are held accountable.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers,” Booth said.
“Employers should also be aware that taking action to improve compliance in the building and construction industry and protect visa holders, who may be vulnerable, are priorities for the FWO.”
The watchdog said in the seven financial years leading up to June 2024, it initiated 146 litigations against employers involving visa-holder workers and successfully secured nearly $23 million in penalties.
This follows a call by Australian construction peak bodies to ensure more skilled migrant tradies enter the country to ease the workforce shortages and deliver the 1.2 million homes needed by the National Housing Accord.
A directions hearing has been set for 5 March 2025 in the Federal Circuit and Family Court in Sydney.