The Fair Work Ombudsman has won $67,347 in penalties against the operators of two Melbourne construction businesses after they failed to comply with orders to back-pay four carpenters.
The Federal Circuit and Family Court imposed a $53,625 penalty on LROC Builders Pty Ltd and $13,722 on its director and sole owner, Lachlan Robert Oliver, who also ran L.R. Oliver Carpentry as a sole trader. Both operations were based at the same Carrum Downs address.
The penalties follow failures by LROC Builders and Mr Oliver to comply with Compliance Notices requiring them to pay entitlements owed to four carpenters employed at various times between December 2018 and April 2022. The group included a 22-year-old worker and a 24-year-old apprentice at the time of their employment.
The court also ordered that part of the penalties be paid to the four 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: “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 regulator began investigating after receiving requests for assistance from the workers. Three were employed by LROC Builders, while one worked directly for Mr Oliver at L.R. Oliver Carpentry.
The FWO issued a Compliance Notice to Mr Oliver in April 2022 and further notices to LROC Builders in December 2022 and March 2023 after forming a belief the workers had not been paid their full lawful entitlements. The alleged underpayments related to minimum wages, overtime, fare-and-travel allowances, leave entitlements and public holiday pay under the Building and Construction General On-site Awards 2010 and 2020 and the National Employment Standards in the Fair Work Act.
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.” She found the contraventions were deliberate, that LROC Builders and Mr Oliver had shown no contrition, and that penalties were needed to deter 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 decision comes as the FWO reports it recovered nearly $16.5 million in unpaid entitlements across the building and construction sector between 10 November 2022 and 30 June 2025, after resuming responsibility for regulating Fair Work Act compliance in the commercial sector on 10 November 2022.
LROC Builders and Mr Oliver have been contacted for comment.
