Employment law update: Fair Work Ombudsman issues proceedings against residential builder

The Fair Work Ombudsman has issued proceedings in the Federal Circuit and Family Court against the operator of a residential building and construction business in south-west Sydney for allegedly failing to comply with a Compliance Notice.

Background

It is alleged that Mr Humza Moussa, as operator of Xteria Designs, did not pay a 15-year-old casual labourer in accordance with the Building and Construction General On-site Award 2020.

The Fair Work Ombudsman investigated Mr Moussa (who was operating the business as a sole trader) after the worker requested assistance. The inspector believes Mr Moussa did not pay the worker any wages for the final two weeks of work he performed. This resulted in the underpayment of his casual wage, casual loading and industry allowances.

A Compliance Notice, requiring Mr Moussa to back-pay the worker what he was owed under the Award, was issued in August 2022. It is alleged that Mr Moussa has not complied with the Compliance Notice.

What is a Compliance Notice?

According to the Fair Work Ombudsman, a Compliance Notice is:

“a notice issued by a Fair Work Inspector which requires an employer to fix a breach of an Australian workplace law.”

It must include the following information:

• How the employer has breached a workplace law;
• What the employer needs to do to fix the issue;
• The time the employer has to fix the issue;
• How the employer can apply to have the notice reviewed by a court;
• What happens if an employer doesn’t comply with the notice.

If a Compliance Notice is issued and an employer does not comply with it, the Fair Work Ombudsman can take the employer to court and seek an order for them to comply with the notice in addition to a penlty.

Fair Work proceedings

The Fair Work Ombudsman is seeking an order for Mr Moussa to pay the amounts allegedly owing to the employee as well as a penalty of up to $6,660.00.

A directions hearing is listed in Sydney later this month, on 28 June 2024.

The Fair Work Ombudsman, Anna Booth, said Fair Work will continue taking businesses to court to ensure compliance with workplace laws.

“Improving compliance in the building and construction industry and protecting young workers are among our top priorities,” she said.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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• employment law
• contract law