A Perth-based IT business has been ordered to pay the maximum available penalty after deliberately ignoring a Fair Work Compliance Notice. The Federal Circuit and Family Court imposed a $41,250 fine and directed the company to calculate and back-pay the outstanding entitlements to a former full-time IT helpdesk employee, including interest and superannuation.
What Happened
The Fair Work Ombudsman (FWO) investigated following a worker’s request for assistance. The inspector found the employee had been underpaid minimum wages for his three years of employment and was not paid any wages for their final three weeks of work. The worker was also not paid out their accrued but unused annual leave entitlements on termination of employment.
In May 2023, the FWO issued a Compliance Notice requiring the company to correct the underpayments. Instead of complying, senior management threatened legal action against the FWO and refused to back-pay the worker.
The court found the company showed a “deliberate and intentional defiance” of the Compliance Notice. The Judge highlighted the absence of a workplace culture of compliance and described the refusal to act as conduct warranting the strongest deterrence. This intentional breach prompted the Court to impose the maximum penalty available.
Consequences
Along with the $41,250 penalty, the business was ordered to calculate and repay the worker’s outstanding wages, annual leave, interest, and superannuation. The case sends a clear message: ignoring Fair Work Compliance Notices exposes businesses to hefty fines and additional orders to rectify underpayments.
Lessons for Employers
- Build a Culture of Compliance
Ensure senior management understands workplace laws and models compliance. A defiant attitude attracts maximum penalties. - Address Underpayments Promptly
Investigate and resolve any suspected underpayment quickly. Voluntary rectification can prevent escalation and legal action. - Maintain Clear Payroll Systems
Regular audits and accurate record-keeping help avoid breaches and demonstrate good faith if issues arise. - Engage Early with Regulators
If there is disagreement about a Compliance Notice, seek legal advice and negotiate with the FWO rather than ignore the notice. - Take Compliance Notices Seriously
A Compliance Notice is a legal instrument and failure to act on it will lead to penalties. The FWO will continue to take legal action to protect employees, even if the notice has been ignored.
This case is a reminder that Fair Work obligations are non-negotiable. Businesses that defy lawful directions risk severe financial and reputational damage. Compliance and cooperation can save time, money, and trust.
At ProcessWorx, we are committed to helping businesses strengthen their HR compliance. If you’d like to learn how ProcessWorx can assist with Human Resources or Work Health & Safety, please contact us on 08 9316 9896 or enquiries@processworx.com.au. Also watch an Introduction to ProcessWorx.
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