Western Sydney Company Fined for Underpaying Apprentice
Thursday 29 September 2016 @ 10.16 a.m. | Industrial Law
A western Sydney commercial flooring company has reimbursed an apprentice floor layer almost $25,000 after an investigation by the Fair Work Ombudsman (the Ombudsman) found he had been underpaid over two years.
The Ombudsman has announced enforcement action against the company, Pampost Pty Ltd (t/a Bass Floor Company in the Sydney suburb of Guildford West) as a result of the underpayment.
Background to the Case
The adult apprentice was short-changed $24,920 as a result of being underpaid his minimum wages and entitlements under the Building and Construction General On-site Award.
The company was audited in March 2016 as part of a Fair Work Ombudsman pro-active compliance and education campaign across western Sydney.
The audit revealed that the full-time apprentice had been paid junior rates between 1 October 2014 and 30 June 2016.
Fair Work inspectors also observed that the company had a practice of paying tool allowances into a “kitty” from which staff purchased tools as and when required, instead of paying it direct to employees.
Corrective action taken by the company
The company and its sole director, Timothy Minogue, have entered into an Enforceable Undertaking with the Ombudsman aimed at encouraging behavioural change and future compliance with workplace laws.
Enforceable Undertakings were introduced by legislation in 2009 and the Ombudsman has been using them to achieve strong outcomes against companies that breach workplace laws, without the need for civil court proceedings.
Ms James says:
“We use Enforceable Undertakings where we have formed a view that a breach of the law has occurred, but where the employer has acknowledged this, accepted responsibility and agreed to co-operate and fix the problem.”
Previous action by the Ombudsman
In 2015-16, a total of $3.85 million in underpaid wages and entitlements was returned to 2,132 employees as a result of their employers entering into Enforceable Undertakings with the Ombudsman, up slightly on the $3.75 million recovered for 2,507 workers the previous year.
Ms James says the Fair Work Ombudsman is committed to helping employers understand and comply with workplace laws, but operators need to make an effort to get the basics right in the first place:
“The Fair Work Ombudsman is striving to build a culture of compliance where businesses understand and comply with their lawful obligations.”
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Sources:
$25,000 back-pay for apprentice floor layer – www.fairwork.gov.au
