In a recent legal development, the Fair Work Ombudsman (FWO) has secured a $9,250 penalty against ECJ Group Pty Ltd, a Western Sydney-based electrical services company, for failing to comply with a Compliance Notice related to employee underpayments.
The investigation began after a worker, employed full-time by ECJ Group from May 2018 to September 2022, sought assistance from the FWO. Initially an adult apprentice, the worker transitioned to an electrical worker in July 2022. The FWO found that ECJ Group had underpaid the employee's minimum wages and annual leave entitlements, as stipulated by the Electrical, Electronic and Communications Contracting Award 2020 and the National Employment Standards under the Fair Work Act.
In December 2023, a Compliance Notice was issued to ECJ Group, requiring the company to rectify the underpayments totaling $19,963. However, the company failed to comply within the specified timeframe, prompting the FWO to initiate legal proceedings. Only after the commencement of these proceedings did ECJ Group reimburse the worker. Additionally, the court ordered the company to pay $802 in outstanding superannuation entitlements.
Fair Work Ombudsman Anna Booth emphasized the importance of adhering to Compliance Notices, stating, "When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties in addition to still being required to back-pay workers, including superannuation."
This case serves as a reminder to employers about the significance of compliance with workplace laws and the potential consequences of neglecting employee entitlements. The FWO continues to offer free advice and assistance to both employers and employees regarding their rights and obligations in the workplace.
View the media release here