A $12k lesson in compliance for a Victorian-based business

Harris Group Co Pty Ltd (Harris Trucking), a furniture delivery business based in Victoria’s Gippsland region, has faced severe legal consequences for failing to meet its obligations under workplace laws. The Federal Circuit and Family Court has imposed close to $12,000 in penalties after the business and its sole director, Matthew Harris, failed to comply with a Compliance Notice issued by the Fair Work Ombudsman (FWO) three years ago.

Here, our experts explain the details of this case and why it serves as a reminder to employers that failure to comply with a Compliance Notice may result in the FWO pursuing legal action.

Unpacking the Harris Trucking case details: what happened?

The FWO initiated an investigation after receiving a complaint from an affected worker who Harris Trucking employed between September 2021 and January 2022. A Fair Work Inspector issued a Compliance Notice in April 2022 after identifying underpayments owed to the worker. This included overtime, Saturday penalty rates under the Road Transport and Distribution Award 2020 and accrued annual leave entitlements owed under the Fair Work Act 2009 (Cth) (FW Act)’s National Employment Standards.

Despite receiving assistance and multiple reminders from the FWO, Harris Trucking failed to address the Compliance Notice requirements. Judge Janine Young, who presided over the case, highlighted that the company’s inaction undermined the enforcement framework of the FW Act and the safety net of entitlements it aims to protect. The penalties imposed are intended to deter future breaches by the company and provide a strong message to other employers.

Fail to comply, and the FWO will pursue legal action

The penalties include $9,990 against Harris Group Co Pty Ltd and $1,998 against Mr Harris personally for his involvement in the breach. In addition to the monetary penalties, the Court has ordered the company to comply with the original Compliance Notice, which requires calculations and back payments for a part-time delivery driver, including superannuation and interest.

The lessons for employers

This case is a critical reminder of the serious consequences of ignoring Compliance Notices. FWO Compliance Notices aren’t optional. They’re legally binding directives designed to ensure employees receive their rightful entitlements. Failure to respond to these notices can lead to severe financial penalties, reputational harm, and additional legal obligations to resolve non-compliance in the workplace.

• Understanding your obligations starts with being familiar with awards, agreements, and workplace laws relevant to the industry.
• Take necessary action promptly. If you receive a notice of compliance, you must act immediately to rectify the issue and minimise risk.
• Proactively review your payroll and employment practices with regular, comprehensive audits of your business.

Fair Work Ombudsman Anna Booth emphasised, “Employers who fail to act on these notices risk substantial penalties in addition to the need to pay workers amounts required by such notices. When Compliance Notices are not followed, we will continue to take legal action to protect employees.”

Thinking about your workplace compliance? Talk to us

Managing payroll can be tricky, and mistakes happen – that’s where Citation HR comes in. We know you’d never dream of underpaying your employees, but the reality is that payroll errors can cost you time, money, and even your reputation.

Our workplace relations experts can complete a comprehensive HR Compliance Audit of your business. And the best part? The service is included in our simple, cost-effective monthly subscription designed to protect your business from avoidable risks. By investing in smart payroll solutions and expert advice, you’ll save yourself the stress and have more time to focus on what you do best, running your business.

For clients, if any of this information has raised any questions about addressing non-compliance in the workplace or you’ve got another matter you need assistance with, reach out to our experts via our 24/7 HR Advice Line.

Not a Citation HR client? Why not give our advice a try? Arrange a complimentary workplace compliance consultation with our friendly team today, and we’ll help you identify potential risks and address them before they turn into costly risks. Get in touch with our team for a confidential, no-obligation chat here.