NSW building company to face $40k fine
A New South Wales building and construction company is facing court and over $40,000 fine for failing to comply with to pay workers’ entitlement.
The Fair Work Ombudsman has launched legal action against Wollongong-based IPS Holdings NSW Pty Ltd and its sole director, Steven Sonnleitner, for allegedly breaching Australia’s Compliance Notice laws.
The watchdog was contacted by a former construction employee who worked full-time between September 2021 and September 2022.
After reviewing the case, a Fair Work inspector found that the company failed to pay the worker its remaining annual leave entitlement at the end of its employment contract, as mandated by the Fair Work Act’s National Employment Standards.
The inspector issued a Compliance Notice to IPS Holdings NSW in February 2023
The watchdog alleges that the NSW building company failed to comply with the Compliance Notice, which requires calculating and back-paying workers' entitlements.
The Fair Work Ombudsman alleges IPS Holdings NSW, without a reasonable excuse, failed to comply with the Compliance Notice, which required it to calculate and back-pay the worker’s entitlements.
IPS Holdings NSW is now facing a penalty of up to $41,250, and Sonnleitner, who was allegedly involved in the contravention, faces up to $8,250 for failing to comply with the Compliance Notice.
The regulator also asks the company to calculate and rectify any outstanding amounts, including interest.
Fair Work Ombudsman Anna Booth, said the watchdog's priority remains with workers and would take any unlawful businesses to court.
“Where employers do not comply, we will take appropriate action to protect employees,” Booth said.
“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.”
“Employers should also be aware that improving compliance in the building and construction industry is a priority for the FWO,” Booth concluded.