Residential building company in court

11 January 2023

In December 2022 the Federal Circuit and Family Court issued orders declaring that Krown Homes Pty Ltd contravened the Fair Work Act by failing to comply with the Compliance Notice and that Mr Cetinkaya was involved in the contravention. The Court also ordered Krown Homes to calculate and pay outstanding superannuation owed to the worker. Krown Homes back-paid other entitlements after the Fair Work Ombudsman commenced legal action.

28 November 2022

The Fair Work Ombudsman has commenced legal action against a Canberra-based residential building company and its director.

Facing court is Krown Homes Pty Ltd and its sole director and secretary, Ismail Cetinkaya.

The regulator investigated after receiving a request for assistance from a worker who had been employed by Krown Homes as a full-time carpenter between September 2020 and June 2021.

A Fair Work Inspector issued a Compliance Notice to Krown Homes in August 2021 after forming a belief the worker had not been paid all entitlements owed under the Building and Construction General On-site Award 2020 and the Fair Work Act’s National Employment Standards.

The worker is allegedly owed payment-in-lieu-of-notice of termination and redundancy entitlements.

The Fair Work Ombudsman alleges Krown Homes, without reasonable excuse, failed to comply with the Compliance Notice, which required it to calculate and back-pay the worker’s entitlements.

It is alleged Mr Cetinkaya was involved in the contravention.

Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties in addition to back-paying workers.”

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance,” Ms Parker said.

The FWO is seeking penalties, in the Federal Circuit and Family Court in Canberra, for the alleged failure to comply with the Compliance Notice. Krown Homes Pty Ltd faces a penalty of up to $33,300 and Mr Cetinkaya faces a penalty of up to $6,660.

The regulator is also seeking an order for Krown Homes to comply with the Compliance Notice, which includes rectifying the alleged underpayment in full, plus interest and superannuation.

Employers and employees can visit or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Small businesses can find targeted resources at the Small Business Showcase.

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