The Fair Work Ombudsman has won $29,700 in penalties against a Melbourne electrical services business and its director after they failed to comply with an order to address underpayments to a young worker.
The Federal Circuit and Family Court fined Tullamarine-based New Switch Electrical Pty Ltd $24,750 and its sole director, Mark Ladores Tan, $4,950 for failing to comply with a Compliance Notice that required the company to calculate and back‑pay a former employee’s entitlements. The regulator said Mr Tan was involved in the contravention.
The worker was employed by New Switch Electrical between August 2021 and September 2022, initially as a fourth‑year apprentice before becoming a full‑time electrician. He was aged 23 to 24 during his employment.
In addition to the penalties, the court ordered New Switch Electrical to take the steps set out in the Compliance Notice, including calculating and rectifying any underpayments, plus superannuation.
Fair Work Ombudsman Anna Booth said employers who ignored Compliance Notices risked court‑imposed penalties as well as being compelled to comply. “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 sector are among our top priorities.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The FWO began investigating after receiving a request for assistance from the worker. It issued a Compliance Notice to New Switch Electrical in December 2022 after forming a belief the worker had been underpaid wages and annual leave entitlements under the Electrical, Electronic and Communications Contracting Award 2020 and the National Employment Standards in the Fair Work Act.
In her judgment, Judge Catherine Symons described failing to comply with a Compliance Notice as a “serious matter” and said penalties were needed to deter future breaches. “This reflects the fact that there is a proper basis to find that neither respondent has demonstrated any insight or contrition around the failure to comply with the [Compliance] Notice and has not cooperated with the Ombudsman at any stage of the proceeding or at any stage prior to its commencement,” Judge Symons said.
The case comes as the regulator reports recovering nearly $16.5 million in unpaid entitlements for employees across the building and construction sector between 10 November 2022, when it resumed responsibility for regulating Fair Work Act compliance in the commercial building and construction sector, and 30 June 2025.
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