The Fair Work Ombudsman (FWO) has secured a second penalty against a Queensland glass repair business, nearly 10 years after the first penalty.
In a matter that reinforces the importance of keeping your glass clean and compliant, the second penalty of $99,900 was imposed earlier this month after the FWO sought the penalty from the Federal Circuit and Family Court of Australia.
The company, AAA Aussie Emergency Glass, is located in Beenleigh, and its director, Michael Boehm, was also issued with a $16,650 penalty.
The FWO sought the penalties as a result of the business failing to comply with Compliance Notices that it had issued to in respect of four workers who had been underpaid.
A Compliance Notice is a notice that is issued by the FWO that requires an employer to remedy an identified breach. Failure to comply with a Compliance Notice can result with the FWO seeking a court order for the employer to comply, and for penalties to be imposed.
Compliance is Best
Compliance Notices will generally be issued to an employer as a step prior to civil litigation commencing.
Where in receipt of one, an employer should first read and understand what is required of them, and then take the necessary action to fix the issue that is the subject of the Compliance Notice. As a Compliance Notice will also contain a timeframe, it is important to ensure the action to be taken is take within that timeframe.
Failure to do so may result with the FWO to seek compliance via litigation in the courts, and this can also include penalties, as evidenced by the above recent case.
An employer who complies with a Compliance Notice will not be subject to litigation.
The business also failed to comply with a Notice to Produce; a formal notice requiring an employer to produce (specified) documents to the FWO. This resulted in a total of $116,650 in penalties. Added to that is the value of the underpayments that were due to the four workers, plus interest.
Prior Incident
The business was penalised $35,500 in early 2016 for failing to comply with a Fair Work Commission (FWC) order to compensate an employee who was held to have been unfairly terminated by the business in 2013. The order for compensation was made in August 2014.
After failing to comply with the FWC compensation order, the FWO commenced action on behalf of the (former) employee.
Hefty Penalties
The business referred to in this article has copped penalties of over $150,000. Failure to comply with both the FWC and FWO notices/orders has been an expensive exercise.
Final Thoughts
The recent AAA Aussie Emergency Glass case serves as a potent reminder: compliance is not optional. Ignoring a Compliance Notice, failing to produce required documents, or delaying corrective action can lead to significant penalties, not just for the business, but also for its leadership. Over $150,000 in penalties shows the serious financial risk of non‑compliance, even for repeat offenders.
At IRiQ Law, we help businesses respond to Compliance Notices properly, implement systems to avoid underpayments, and ensure obligations under both FWO and FWC orders are met. If you receive such a notice, or want to check your pay and policy processes before one arrives, contact us today.
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