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The Canberra Times
The Canberra Times
National
Toby Vue

'Well established' building firm accused of backpay failure

A Canberra residential building company and its director have been taken to a federal court accused of failing to comply with a notice to backpay a worker.

The Fair Work Ombudsman has filed a claim in the Federal Circuit and Family Court against Krown Homes Pty Ltd and Ismail Cetinkaya, the company's sole director and secretary.

In a media statement, the regulator said it began an investigation after receiving a request for help from a worker who had been employed by the company as a full-time carpenter between September 2020 and June 2021.

A Fair Work inspector then issued a compliance notice to Krown Homes in August 2021 after forming a belief the worker had not been paid all entitlements owed under the Building and Construction General On-site Award 2020 and the Fair Work Act's national employment standards.

The worker is allegedly owed payment-in-lieu-of-notice of termination and redundancy entitlements.

In the court claim, the ombudsman, Sandra Parker, alleges Krown Homes without reasonable excuse failed to comply with the notice, which required it to calculate and back-pay the worker's entitlements.

It is alleged Mr Cetinkaya was involved in the breach. Ms Parker is seeking penalties from the court in Canberra for the alleged failure to comply with the notice.

Krown Homes faces a penalty of up to $33,300 while Mr Cetinkaya faces a penalty of up to $6660.

The ombudsman is also seeking an order for the company to comply with the notice, which includes rectifying the alleged underpayment in full, plus interest and superannuation.

Ms Parker said they would continue to enforce workplace laws and take firms to court over allegations of non-compliance with lawful requests.

"Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties in addition to back-paying workers," Ms Parker said.

"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."

In a directions hearing in the court earlier in November, judge Warwick Neville ordered for the parties to provide an update to chambers about the procedural course moving forward.

Further, that the matter will be listed for mention on a date and time to be advised by the court.

Both respondents have not yet filed defence statements to the court. Mr Cetinkaya has been contacted for comment.

The company on its LinkedIn profile states it was founded in 2014. It also states that it has become a "well established locally operated and family owned building company with many years of experience". The ombudsman filed its statement of claim in mid August.

Canberra-based Krown Homes and its director are accused of failing to comply with a notice to backpay a full-time worker. Picture Keegan Carroll
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