Fair Work Ombudsman taking action for underpayments and payslip breaches


Employers are reminded that the Fair Work Ombudsman (FWO) will take action where they believe employees are not receiving their entitlements.

The FWO is currently seeking orders against a Melbourne based labour hire company, Oz ESDM Pty Ltd, to rectify an alleged underpayment of wages under the Health Professionals and Support Services Award 2020 and failure to pay accrued annual leave entitlements. There is also an alleged failure to provide payslips which the FWO is also seeking a penalty.

The FWO took action after Oz ESDM Pty Ltd failed to comply with a compliance notice to rectify these issues. The compliance notice was issued in April 2023, requiring the company to calculate and back-pay the employee’s entitlements totaling at least $5,815. However, without reasonable excuse, the compliance notice was not complied with.

The failure to comply with the compliance notice may result in a penalty of up to $41,250 for the company, and a penalty of up to $8,250 for its sole director. In addition, the alleged payslip breaches result in a penalty of up to $66,000 for the company and a penalty of up to $13,320 for the director.

A hearing listed in the Federal Circuit and Family Court in Melbourne in April 2024 will determine whether Oz ESDM and Mr Guo face compensation orders to rectify the alleged underpayment in full, plus interest and superannuation.

Employers are reminder to be aware of their obligations under relevant Awards and the Fair Work National Employment Standards in relation to wages, allowances, and payments to ensure compliance with statutory obligations.

The Fair Work Commission Regulator continues to enforce workplace laws and take employers to Court to enforce these obligations.

Griffin Legal can assist in ensuring you meet your organisation’s obligations under the Fair Work Act.

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