Fair Work Ombudsman Cracks Down on Non-Compliance $29,700 in Penalties Issued for Ignoring Compliance Notice.
Civil contractors are being reminded of the serious consequences of ignoring Fair Work Ombudsman (FWO) directions, following a recent Federal Court decision that saw a Melbourne-based electrical company and its director fined nearly $30,000 for failing to comply with a Compliance Notice.
The Federal Circuit and Family Court imposed a $24,750 penalty on New Switch Electrical Pty Ltd and an additional $4,950 penalty on its sole director, Mr Mark Ladores Tan, after the company failed to back-pay a young worker his lawful entitlements.
The breach occurred when the company ignored a Compliance Notice issued by the FWO requiring it to calculate and rectify underpayments owed to a former apprentice-turned-electrician, employed between August 2021 and September 2022. The Court also ordered the company to now complete the required back-payments, including superannuation.
Fair Work Ombudsman Anna Booth said the case serves as a clear warning to employers who think they can disregard Compliance Notices without consequence.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Booth said.
“Employers also need to be aware that taking action to protect young workers, which can often include apprentices, and improving compliance in the building and construction sector are among our top priorities.”
Judge Catherine Symons, in delivering her judgment, described the company’s conduct as a “serious matter”, noting that neither the company nor its director had demonstrated insight, contrition, or cooperation at any stage of the proceedings. The Court found penalties were necessary to deter similar future behaviour, particularly given the lack of engagement with the Ombudsman’s investigation.
The case originated from a worker’s request for assistance, leading to an FWO investigation and subsequent Compliance Notice issued in December 2022. The FWO determined that the worker had been underpaid wages and annual leave entitlements owed under the Electrical, Electronic and Communications Contracting Award 2020 and the Fair Work Act’s National Employment Standards.
Since resuming responsibility for regulating the building and construction sector in November 2022, the FWO has recovered nearly $16.5 million in unpaid entitlements for employees across the industry, a clear sign that enforcement efforts are intensifying.
What This Means for Contractors
This case is a timely reminder that Compliance Notices are not optional. If issued, employers must act promptly to assess, calculate, and rectify any identified underpayments. Failure to do so exposes both the business and individual company officers to financial penalties and reputational damage.
Civil contractors particularly those engaging apprentices, trainees, or young workers should ensure they:
- Maintain accurate time, wage, and leave records.
- Regularly review pay practices to ensure compliance with the relevant Award.
- Respond quickly and transparently to any FWO requests or Compliance Notices.
- Seek professional advice before contesting or delaying a notice.
Ignoring or mishandling compliance directions can prove far more costly than addressing them cooperatively and in good faith.
Key Takeaway
The Fair Work Ombudsman has made clear that enforcement in the construction and civil contracting sectors remains a top priority. Employers who disregard Compliance Notices risk not only penalties but public naming, court orders, and potential director liability.
Now is the time for all contractors to review their employment practices, ensure payroll accuracy, and take compliance seriously.
If you are not sure that your practices are compliant, contact CCF NSW for assistance on 9009 4000.