Former Melbourne construction business faces $18k fine
The Fair Work Ombudsman has launched legal action against a former construction business operator in Melbourne for failing to pay minimum wage.
The watchdog has commenced legal action against sole trader Daniel Paul O’Loughlin, who owned and operated Torco Constructions, following an investigation that revealed a worker hadn’t received the legal minimum wages.
The regulator investigated after receiving a request for assistance from a 21-year-old worker who was employed full-time by the construction company between June and October 2023
In February 2024, a compliance notice was issued to O’Loughlin after it was determined that the worker had not received the minimum wages for ordinary hours and overtime, as required under the Building and Construction General On-site Award 2020.
Following the Fair Work Act’s National Employment Standards, the watchdog inspector also concluded that the worker was not paid his accrued but untaken annual leave entitlements at the end of his employment.
The regulator’s investigation alleges that O’Loughlin had no “reasonable excuse” and failed to comply with the law by not calculating and back paying the worker’s entitlements.
The FWO is now pursuing O’Loughlin in court for the alleged failure to comply with the compliance notice, which could face a penalty of up to $18,780.
The watchdog also seeks court-ordered reparation, demanding O’Loughlin comply with the compliance notice by correcting outstanding entitlements, including superannuation and interest.
Fair Work Ombudsman Anna Booth said the regulator would remain firm in enforcing workplace laws and pursuing legal action against unlawful businesses.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and to take steps to comply with a compliance notice, including calculating and back paying entitlements,” Booth said.
“Employers should also be aware that improving compliance in the building and construction industry and taking action to protect young workers are priorities for the FWO.”
A directions hearing has been set for 12 March 2025 in the Federal Circuit and Family Court in Melbourne.