Workplace watchdog the Fair Work Ombudsman launched legal action against a Western Sydney construction business.

Facing the court is Clark Projects Pty Ltd, a company that builds demountable and portable buildings.

The regulator investigated after receiving a request for assistance from a former employee, who was engaged as a casual worker for about seven weeks in August and September 2022.

A Fair Work Inspector issued a compliance notice to Clark Projects in June 2023 after forming a belief that the former employee was underpaid the casual ordinary rate and was not paid at all for hours worked – ordinary or overtime – for about the last two weeks of their work.

The inspector formed a belief the wages were owed under the Building and Construction General On-site Award 2020.

The Fair Work Ombudsman alleges Clark Projects, without reasonable excuse, failed to comply with the compliance notice which required it to calculate and back-pay the worker’s entitlements.

It is alleged that the amount the employer was required to pay to comply with the compliance notice was AUD 4,583 (USD 3,077), plus superannuation.

The Ombudsman is seeking a penalty in court. Clark Projects faces a penalty of up to AUD 46,950 (USD 31,523) for the alleged failure to comply with the compliance notice. The regulator is also seeking an order for the company to pay the alleged amount owing to the employee, plus superannuation.

A hearing is listed in the Federal Circuit and Family Court in Sydney on 13 September 2024.