Court-imposed penalty for business owner who treated FWO notice with ‘utter contempt’

The operator of a Gold Coast-based gardening and landscaping business has been criticised by a Federal Circuit and Family Court judge for ignoring his employer obligations.

Luke Chamberlain has been ordered to pay a $10,500 penalty to the Fair Work Ombudsman (FWO) and complete a $3,098 back payment to two workers, both aged under 21 at the time of their employment.

The investigation commenced after the two workers contacted the FWO for assistance, with a resulting compliance notice being issued to Chamberlain in August 2023 regarding alleged underpayments under the Gardening and Landscaping Award 2020 and the Fair Work Act.

The underpayments were alleged to have occurred in different periods between 2021 and 2023, with a Fair Work inspector finding Chamberlain allegedly failed to pay one school-aged apprentice any wages for work over a two-month period, and additionally underpaid another worker’s minimum wages.

According to Judge Salvatore Vasta, Chamberlain did not comply with the notice despite being given “an opportunity to remedy those breaches, in effect, without penalty”.

It was further alleged that pay slips were not provided to the casual worker, which Judge Vasta identified as symptomatic of his treatment of the worker.

“It has been said that the provision of a pay slip allows an employee to understand what amount they have been paid, how many hours they have worked, the rate of pay and their annual leave balance. Without such a pay slip, it is difficult for an employee to properly plan their life,” Judge Vasta said.

FWO Anna Booth noted that failure to act on compliance notices will see employers face legal action and court-imposed penalties on top of backpay orders.

“Employers should be aware that taking action to protect young workers is an enduring priority for the FWO,” she said.

Regarding pay-slip obligations, Booth explained their importance in providing “the clarity they need about their pay, and we expect every employer to follow laws requiring them to provide pay slips to their employees within one business day of them being paid”.

Ongoing coverage of alleged underpayments has seen cases in childcare, real estate, and within universities.

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