Melbourne construction business fined $6k by FWO

Earlier this week (1 December), the Fair Work Ombudsman hit the former operator of a construction business in Melbourne with a substantial penalty for non-compliance on underpayments.

The former sole-trading operator of Torco Constructions, Daniel Paul O’Loughlin, was fined $6,000 at the Federal Circuit and Family Court on Monday for failure to comply with a compliance notice issued in February 2024.

Compliance notice for underpayments

Presiding Judge Amanda Mansini ordered that O’Loughlin back pay a 21-year-old full-time construction worker, whom the operator employed from June to October 2023.

The worker reached out to the Fair Work Ombudsman (FWO) for assistance following underpayment, prompting the ombudsman’s investigations.

Under the compliance notice, O’Loughlin was to rectify underpayments owed to the worker under the Building and Construction General On-site Award 2020, as well as back payments for unpaid superannuation, annual leave entitlements, and interest.

Deliberate, ongoing and demonstrative disregard

Judge Mansini found that O’Loughlin’s behaviour was “deliberate, ongoing, and demonstrative of a disregard for his obligations under the [Fair Work Act].”

“It is well recognised that younger employees, as here, are more vulnerable to underpayment and such exploitation ought to be deterred,” Judge Mansini said.

General deterrence is necessary to show other employers the importance of compliance with legal obligations owed to their workers, urged Judge Mansini.

“Failure to comply with a statutory compliance notice issued by the Fair Work Ombudsman is serious and operates contrary to the opportunity to resolve matters without need for litigation. Such conduct ultimately serves to undermine the act’s enforcement framework and the safety net of entitlements it is designed to protect.”

Improving compliance in the sector

Employers who fail to act on compliance notices need to be made aware of potential court-imposed penalties, Fair Work Ombudsman Anna Booth (pictured) said.

Booth added: “Employers should be aware that taking action to protect young workers, who may be vulnerable, and improving compliance in the building and construction sector are priorities for us.”

“When compliance notices are not followed, we will continue to take legal action.”