Ignoring Fair Work Compliance Notices Can Be Costly
A Canberra electrical contracting business and its director have been penalised in court after failing to comply with Fair Work Compliance Notices that required them to back-pay two workers.
The case highlights the importance of responding promptly to Fair Work Ombudsman (FWO) notices and ensuring employees receive their lawful entitlements.
Court Orders and Penalties
The Federal Circuit and Family Court has ordered total penalties of $73,242 against:
Canberra Company– fined $61,035
Director – fined $12,207
In addition to the penalties, the court ordered the company to repay $7,156 in underpayments, plus interest and superannuation.
Background to the Case
The Fair Work Ombudsman issued Compliance Notices after investigating the company’s employment practices.
The notices required Canberra Electrical Solutions to calculate and repay outstanding entitlements owed to two workers who were employed between February and October 2023:
An electrical labourer
A junior apprentice, aged 18 at the time
When the company failed to comply with the notices, the Fair Work Ombudsman commenced legal action.
The court found that the company breached workplace laws by failing to comply with the Compliance Notices and that the director was involved in the contraventions.
What Is a Compliance Notice?
A Compliance Notice is a formal direction issued by the Fair Work Ombudsman requiring an employer to:
Fix identified workplace law breaches
Calculate and repay employee entitlements
Provide evidence that the issue has been rectified
Ignoring a Compliance Notice can result in legal action and court-imposed penalties.
A Reminder for Employers
Fair Work Ombudsman Anna Booth emphasised that failing to act on Compliance Notices can significantly increase the consequences for employers.
Even if a business ignores the notice, a court can still require the employer to:
Pay penalties
Repay the outstanding wages
Pay additional interest and superannuation
In other words, ignoring the notice does not remove the obligation to repay workers.
Focus on Construction and Young Workers
The Fair Work Ombudsman has identified the building and construction industry as a priority enforcement area. Protecting young workers and apprentices is also a key focus.
Young workers can be particularly vulnerable to underpayment or non-compliance, which is why regulators closely monitor employer practices in these sectors.
Key Takeaways for Employers
This case highlights several important lessons for businesses:
Respond promptly to Compliance Notices
A Compliance Notice is a serious regulatory step. Ignoring it can lead directly to court proceedings.
Directors can be personally liable
Company directors and managers involved in breaches may face personal penalties.
Underpayments must be rectified quickly
Once identified, employers should calculate and repay entitlements without delay.
Compliance is often far less costly than litigation
Early cooperation with the Fair Work Ombudsman can prevent penalties and reputational damage.
Final Thoughts
The penalties imposed in this case reinforce that the Fair Work Ombudsman will pursue enforcement where employers fail to rectify breaches after being directed to do so.
For businesses, the best protection is ensuring payroll practices are accurate and that any regulatory notices are treated as a priority.
