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ARTICLE · 09 JUNE 2015

Fair Work Commission Imposes Substantial Fine On Employer

Jones Day
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Justice Flick considered that various factors were relevant to the assessment of penalty.

AustraliaEmployment and HR
Adam Salter
Adam Salter
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A building subcontractor has been fined $145,000 and ordered to backpay $150,000 to more than a dozen employees, after a finding that the subcontractor used a labour hire company to attempt to circumvent its employment obligations.

The Federal Court of Australia, in Director, Fair Work Building Industry Inspectorate v Foxville Projects Group Pty Ltd [2015] FCA 492 (21 May 2015), found that the subcontractor, Foxville Projects Group, underpaid employees and failed to credit their annual leave, personal leave and other entitlements. Further, the subcontractor maintained insufficient records and neglected to provide employees with a Fair Work Information Statement. Many of those employees were vulnerable in the sense that they did not speak fluent English which, according to Flick J, made Foxville's failure to inform them of their legal rights as required under section 125 of the Fair Work Act 2009 (Cth) more serious.

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