The Fair Work Ombudsman has secured the maximum available penalty against a Perth IT company that refused to comply with a lawful direction to fix underpayments to a former employee.
The Federal Circuit and Family Court fined My IT Partner Pty Ltd, which trades as My Info Tech Partner, $41,250 for failing to act on a Compliance Notice relating to a full-time helpdesk support worker employed between August 2019 and August 2022. The court also ordered the company to calculate and back-pay the entitlements still owed to the worker, plus interest and superannuation.
The regulator launched its investigation after the worker sought assistance. A Fair Work Inspector issued the Compliance Notice in May 2023, having formed a belief the company had underpaid minimum wages during the worker’s employment and failed to pay any wages for the final three weeks worked, with the amounts alleged to be owed under the Miscellaneous Award 2010 and 2020. The inspector also believed the worker was not paid accrued but untaken annual leave at the end of employment, owed under the National Employment Standards.
In his judgment, Judge Sandy Street said the company had shown a “deliberate and intentional defiance of the notice”, citing correspondence from sole director and shareholder Aaron Fisher that threatened to sue the Ombudsman if enforcement action continued. Judge Street found that the “deliberate and defiant refusal” to comply reflected “conduct of a kind that shows there is a very real need for subjective deterrence”.
“The evidence as to continued existence of [My IT Partner Pty Ltd] and [its] engaging employees and the absence of any culture conducive to compliance and the role of senior management in the deliberate and intentional contravention in the present case warrants the Court imposing the maximum penalty on [the company],” Judge Street said.
Fair Work Ombudsman Anna Booth warned employers that ignoring Compliance Notices can have severe consequences. “When Compliance Notices are not followed, we will continue to take legal action to protect employees,” Ms Booth said.
“The case highlights that employers who fail to act on these notices – including those who deliberately seek to defy them – risk substantial penalties in addition to being ordered to back-pay workers.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The Ombudsman provides free resources to help businesses understand and meet their workplace obligations, including guidance on Compliance Notices.