In a judgment handed down on 17 June 2025, the Federal Circuit and Family Court of Australia awarded a convenience store worker $68,502.90 in compensation for various breaches of the Fair Work Act 2009 (FWA).
The Court found that the employer had contravened section 45 of the FWA by failing to comply with several of its obligations, including:-
- Underpayment of wages – including failure to pay correct wages, overtime entitlements, and penalty rates;
- Failure to classify the worker under the Award in writing, as required;
- Failure to provide a Fair Work Information Statement, which must be given to all new employees;
- Failure to provide payslips, despite payments being made for work performed.
In addition to making an adverse finding against the company, the Court also found one of the company’s directors personally liable under section 550 of the FWA for their role in the contraventions.
The Court reserved its decision on penalties and costs, pending further submissions from the parties on how penalties should be assessed. Penalty and costs orders will be determined at a later date.
Key Takeaways
This case serves as a stark reminder of the importance of businesses’ compliance with their obligations under the FWA, including:-
- Accurate and timely wage payments;
- Provision of essential documentation to workers such as written notice of employee classification, payslips, and Fair Work Information Statements;
- Awareness of personal liability risks for directors involved in such contraventions.
Employers should regularly review their payroll practices and documentation to ensure they meet all obligations under the FWA. Failure to do so can lead not only to compensation orders, but also significant penalties and personal liability exposure for those in control of the business.
If you need assistance with employment compliance or are facing a Fair Work claim, our experienced team can help. Contact us to arrange an early consultation for employment law advice.
