The Fair Work Ombudsman filed the case against Canberra Electrical Solutions. Photo: Fair Work Commission.
A court has ordered a Canberra company and its director to pay about $80,000 in compensation and penalties for underpaying two employees.
The Fair Work Ombudsman took Canberra Electrical Solutions and its sole director, Tayfun Yildirim, to the Federal Circuit and Family Court of Australia over the claims against them.
In a published decision from last week (30 January), Judge Vanessa-Jane Leishman ordered the company to pay about $7100, plus interest, in compensation for the workers.
In addition, the company was fined about $61,000, and Mr Yildirim was fined about $12,200.
Judge Leishman said Fair Work began an investigation in 2023 before it issued compliance notices telling Canberra Electrical Services to calculate and pay any underpayments it owed to the two workers, but the company did not comply with them.
In a statement, Fair Work said the company employed the workers on a full-time basis between February and October 2023. One worked as an electrical labourer, and the other was an 18-year-old junior apprentice.
Fair Work said the compliance notices were issued due to the company underpaying both workers’ minimum wages and annual leave entitlements, while also underpaying the electrical labourer’s overtime entitlements.
In Judge Leishman’s decision, she said that, as Canberra Electrical Solutions and Mr Yildirim failed to appear in court when Fair Work began the proceedings over their compliance notices, the court entered default judgments that they failed to comply with the notices.
The company and the director also did not appear at the penalty hearing. The judge stated that the company was still a registered corporation and that Mr Yildirim was its director at the time of the hearing.
“Therefore, there remains a risk that it may employ staff and breach workplace laws in the future,” she said.
“Accordingly, I conclude that it is necessary to impose a serious and meaningful penalty to ensure the [company and director] comply with the legislative scheme in the future.”
Fair Work Ombudsman Anna Booth said employers who failed to act on compliance notices needed to be aware they could face court-imposed penalties in addition to still paying workers.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties, which can be significant, as in this employer’s case, and to make payments to workers,” she said.
Employers should also be aware that improving compliance in the building and construction sector and protecting young workers, including apprentices, is among our top priorities.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
Employers and employees can visit Fair Work’s website by clicking here or call its infoline on 13 13 94 for free advice and assistance.
