Canberra carpenter fined $38k for failing to compensate unfairly sacked worker

The Fair Work Commission ordered Heath Wright and his company HW Carpentry Solutions pay $7650 compensation to the worker after it found he had been unlawfully dismissed from his job in 2014.

But Mr Wright and his business failed to pay the money, despite repeated approaches from inspectors, prompting the Fair Work Ombudsman to launch legal action in the Federal Circuit Court.

Judge Warwick Neville fined Mr Wright $6426 and penalised his business $32,126 for breaching the Fair Work Act by failing to comply with the order.

The worker was employed as a full-time, first-year adult apprentice by the carpentry business for 12 months before he was sacked in February 2014.

Judge Neville noted in his recent decision the unfair dismissal and failure to pay the compensation had caused the employee significant financial hardship and he hadn't been able to secure a permanent job until May 2015.

"He needed to move back into his parents' house and needed their assistance to pay his daily living expenses, including groceries, phone bills, petrol, electricity and training fees for TAFE," he said.

"He cancelled his mobile phone for a period as he was unable to pay the phone bills and was pursued by a debt collector for an overdue personal loan."

Judge Neville said the employee had expected he would complete his apprenticeship with the company and gain his qualification as a carpenter.

"[He] was unable to obtain any further employment as an apprentice carpenter, did not complete his apprenticeship, and now works as a maintenance worker with his current employer."

Mr Wright had given evidence the business was insolvent before it received the commission's order and would likely be subject to a winding up order from insurers, court documents said.

But the ombudsman argued the company's financial difficulties were no excuse and there was conflicting evidence suggesting the company had been in a position to pay at least some of the initial amount of compensation ordered.

The business had not been wound up or placed into voluntary administration, but ceased trading in July 2014, court documents said.

The watchdog, in its submissions, had argued a hefty fine should be imposed given the company's "deliberate conduct", lack of cooperation during the majority of the investigation, and absence of remorse.

Judge Neville found Mr Wright hadn't showed any contrition and said the employee had not received an apology or any payment from the company.

He ordered Mr Wright pay his fine to the worker to partially meet the compensation amount he was owed, and to complete workplace relations training on employer obligations relating to redundancies, terminations and unfair dismissal.

Fair Work Ombudsman Natalie James said in a statement the fines were a reminder a "deliberate disregarding" of commission orders was serious, particularly in cases where it caused a worker significant financial hardship.

"Compliance is fundamental for the integrity of the workplace relations system and employers should be aware that we are prepared to take action where appropriate," Ms James said.

Attempts were made to contact Mr Wright for comment.