A recent decision of the Federal Circuit and Family Court of Australia is a timely reminder that the Fair Work Ombudsman will issue Compliance Notices even for relatively smaller underpayments, in this case, $1,019.34. The penalties for failure to comply with a Compliance Notice can be substantial and ordered against both the company itself and individuals involved in the non-compliance. In this case, the Court ordered a penalty of $16,650 against the company and $3,330 against the director, neither of whom participated in the proceedings before the Court.
A Compliance Notice is a notice issued by the Fair Work Ombudsman in which they assert a breach of an employer obligation, such as payment of annual leave, notice entitlements, salary or other obligations under the Fair Work Act. Failure to comply with the Compliance Notice within the time required is itself a breach of the Act and will commonly be prosecuted by the Ombudsman. This action can be undertaken separately from any individual claim made by an employee for their unpaid entitlements and does not prevent an individual employee from making such a claim at a later date.
This case highlights the importance of seeking early advice in these type of matters. Where the Compliance Notice is complied with, which in this case required an assessment of outstanding entitlements and payment in the amount of $1,109.34, the Fair Work Ombudsman will not seek penalties and will take no further action in relation to the breach of...
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