An NSW building and construction company is facing legal action and a fine of over $40,000 for failing to comply with workers’ entitlements. The Fair Work Ombudsman has initiated the case against IPS Holdings NSW Pty Ltd and its director, Steven Sonnleitner, for allegedly breaching compliance notice laws in Australia.
The investigation began after a former construction employee contacted the watchdog. The employee had worked full-time for the company between September 2021 and September 2022. Upon reviewing the case, a Fair Work inspector discovered that IPS Holdings NSW had failed to pay the worker their remaining annual leave entitlement at the end of their employment contract, as required by the Fair Work Act’s National Employment Standards.
In February 2023, the inspector issued a Compliance Notice to IPS Holdings NSW. However, the company allegedly failed to comply with the notice, which mandated the calculation and backpayment of workers’ entitlements. The Fair Work Ombudsman claims that IPS Holdings NSW, without a valid excuse, did not fulfill the requirements of the compliance notice.
As a result, IPS Holdings NSW could face a penalty of up to $41,250, while Steven Sonnleitner may be fined up to $8,250 for his alleged involvement in the contravention. Additionally, the regulator has instructed the company to calculate and rectify any outstanding amounts, including interest.
Fair Work Ombudsman Anna Booth emphasized that the priority of the watchdog is to protect workers and hold unlawful businesses accountable. She stated that appropriate action would be taken against employers who fail to comply with regulations, including court-ordered penalties and the fulfillment of compliance notices.
Booth also highlighted the importance of improving compliance in the building and construction industry, which is a priority for the Fair Work Ombudsman. The regulator is committed to ensuring that workers receive their rightful entitlements and will continue to take action against non-compliant businesses.
By taking legal action against IPS Holdings NSW and its director, the Fair Work Ombudsman aims to send a clear message that non-compliance with workers’ entitlements will not be tolerated. Employers in the building and construction industry should be aware of their obligations and ensure they fulfill their responsibilities towards their employees.
