Melbourne home builder slapped with $20k fine following payroll failures

The company is on the hook for $16,500 in penalties, while Mr Douvos’ fine amounts to $3,300. In addition to the penalties, the company must rectify the underpayment to its employee, plus interest and superannuation.

Employing the apprentice between March 2020 and January 2022, the firm was issued with a compliance notice by the Fair Work Ombudsman after the watchdog came to the conclusion that JACZ Holdings had failed to reimburse the worker for training fees and underpaid his minimum apprentice rates.

Having ignored the compliance notice, the builder was then forced to face the court.

Deputy chief judge Patrizia Mercuri noted that Mr Douvos had recently experienced personal difficulties, but judged that there was no evidence that those difficulties impacted the company’s ongoing failure to rectify its non-compliance with the ombudsman’s order.

“Moreover, the respondents have not produced any evidence that they have changed their systems or introduced different practices to ensure that a similar issue does not arise in the future,” Ms Mercuri noted.

She felt there was a need to deter others from believing that compliance notices can be ignored.

“It has been long accepted that a penalty must be set at a level which would encourage other employers to take timely action to comply with a compliance notice issued under the [Fair Work] Act by an inspector,” Ms Mercuri said.

Fair Work Ombudsman Anna Booth stressed that businesses should be aware they could face court for failing their obligations with regards to compliance orders.

“When compliance notices are not followed, we will continue to take legal action. Employers who fail to act on these notices risk substantial penalties and back pay orders,” Ms Booth said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance,” she added.