Electrical services operator charged over underpayments

electrical services

The Federal Circuit and Family Court has imposed a $3780 penalty, plus $2037 in backpay, against a former operator of a Melbourne electrical services business.

The penalty was handed down after Luke Warren, the sole director of Pro Install Electrical Pty Ltd (In Liquidation) based in Rowville, admitted before the court that he was involved in the company’s breach of the Fair Work Act through its failure to calculate entitlements owed to two former employees and back pay any underpayment.

The court case was initiated after the Fair Work Ombudsman investigated the company having received requests for assistance from former employees, including the two workers who had been engaged as a reception and administration assistant and an accounts payable and receivable officer respectively.

One of the workers was engaged by the company between July 2019 and January 2020, and the other for a week in February 2020.

A Fair Work Inspector issued a Compliance Notice to the company in May 2020 after having found that it had failed to pay the two employees, after their employment ended, outstanding wages owed under the Clerks – Private Sector Award 2010.

Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Parker said.

Warren’s company, Pro Install Electrical Pty Ltd, was liquidated after the Fair Work Ombudsman commenced proceedings.