Underpayment claims head to court

197313_02

By Emma Xerri

The Fair Work Ombudsman is commencing legal action against former Carrum Downs business owner, Lachlan Robert Oliver, after staff claimed they had not been paid their full lawful entitlements.

Fair Work Inspectors first investigated the issue after receiving a request for assistance from four carpenters employed across Mr Oliver’s two companies LROC Builders Pty Ltd and L.R. Oliver Carpentry.

The first Compliance Notice was issued to Mr Oliver in April 2022, followed by more Compliance Notices to LROC Builders Pty Ltd in December 2022 and March 2023, which required them to calculate and back-pay the workers’ entitlements.

However, the Fair Work Ombudsman alleges Mr Oliver and LROC Builders Pty Ltd, failed to comply with these notices, without reasonable excuse.

It is alleged that the workers are owed a total of $52,039, including superannuation, claiming that they were underpaid minimum wages, overtime entitlements, fare-and-travel allowances, leave entitlements and public holiday pay, under the Building and Construction General On-site Award 2010, Building and Construction General On-site Award 2020 and the Fair Work Act’s National Employment Standards.

As well as a court order to rectify the alleged underpayments in full, plus interest, the Fair Work Ombudsman is also seeking court penalties of up to $6,660 to $8,250 per breach and a penalty of up to $41,250 for LROC Builders Pty Ltd per breach for failure to meet the requirements of the Compliance Notices.

“Where employers do not comply, we will take appropriate action to protect employees,” Ombudsman Anna Booth said.

“A court can order a business to pay penalties in addition to back-paying workers.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”

A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 7 February 2024.