Construction business operators penalised
The Fair Work Ombudsman has secured $67,347 in penalties in court against the operators of two construction businesses in Melbourne’s south-east, for breaches that impacted four carpenters.
The Federal Circuit and Family Court has imposed a $53,625 penalty against LROC Builders Pty Ltd and a $13,722 penalty against Lachlan Robert Oliver, who is a director and sole-owner of LROC Builders Pty Ltd and also operated ‘L.R. Oliver Carpentry’, as a sole trader.
LROC Builders Pty Ltd and L.R. Oliver Carpentry were based at the same location in Carrum Downs.
The penalties were imposed in response to LROC Builders and Mr Oliver failing to comply with Compliance Notices, which required them to back-pay entitlements owing to four carpenters employed for various periods between December 2018 and April 2022.
The carpenters included a young worker aged 22 and an apprentice aged 24, at the time of employment.
The Court has also ordered that part of the penalties be paid to the affected workers to cover their total outstanding entitlements of $47,243, with individual amounts ranging from $855 to $25,218.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Booth said.
“Employers also need to be aware that taking action to protect young workers, which can often include apprentices, and improving compliance in the building and construction industry are among our top priorities.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The FWO investigated after receiving requests for assistance from the affected workers.
Three of the workers were employed as carpenters by LROC Builders and one was employed directly by Mr Oliver to work at L.R. Oliver Carpentry.
The regulator issued a Compliance Notice to Mr Oliver in April 2022 and Compliance Notices to LROC Builders Pty Ltd in December 2022 and March 2023, after forming a belief the workers had not been paid their full lawful entitlements.
The FWO believed the workers were underpaid minimum wages, overtime entitlements, fare-and-travel allowances, leave entitlements and public holiday pay, under the Building and Construction General On-site Awards 2010 and 2020 and the Fair Work Act’s National Employment Standards.
In her judgment, Judge Catherine Symons found the failure to comply with the Compliance Notices was “unhelpful, obstructive at times, and indicative of a failure to grapple with the responsibilities that inhere in an employer to pay employees in accordance with their lawful entitlements.”
Judge Symons found the contraventions by LROC Builders Pty Ltd and Mr Oliver were deliberate, they had shown no contrition, and there was a need to impose penalties to deter them from similar future conduct.
Judge Symons also said it was “necessary and appropriate for the Court to impose a penalty that signals to employers in the building and construction industry that non-compliance with statutory notices will not be tolerated”.
The Fair Work Ombudsman recovered nearly $16.5 million in unpaid entitlements for employees across the entire building and construction sector between 10 November 2022 and 30 June 2025. (The FWO resumed responsibility for regulating Fair Work Act compliance in the commercial building and construction sector on 10 November 2022.)
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
A free interpreter service is available on 13 14 50. Employees can also seek information from their employer or their union, if they are a member.
Information is available for employees and employers on our apprentices and trainees and young workers and students webpages.
Small businesses can find targeted resources at the Small Business Showcase and information is available for employees and employers at our building and construction industry webpage.
The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.