A lesson in complying with FWO orders for this NSW business

When it comes to employment law, the stakes are high for businesses that fail to meet their obligations. A recent case involving O’Malley’s Operations Pty Ltd (O’Malley’s Operations) brings this into sharp focus. The company is now facing serious legal action and steep penalties after allegedly failing to pay compensation to a worker who was unfairly dismissed upon disclosing her pregnancy.

With potential fines reaching nearly $94,000, this case underscores the critical importance of adhering to Fair Work Commission (FWC) orders. Here, our experts unpack how this business found itself in this situation, the legal ramifications, and what employers can learn about the value of following fair and transparent dismissal procedures.

What are the details of how O’Malley’s Operations Pty Ltd found itself in this situation?

The Fair Work Ombudsman (FWO) has commenced legal action against O’Malley’s Operations, a labour supplier to the Royal Hotel Granville in Sydney, and its operations manager, Riley Panetta-Sleiman, over allegations of non-compliance with an order issued by the FWC. The case centres on a former employee, who worked as a bar and gaming attendant, and was unfairly dismissed in May 2023 after the company became aware she was pregnant.

The dismissal was deemed harsh, unjust, and unreasonable by the FWC, as it occurred abruptly and without prior notice, despite the employee’s pregnancy being unrelated to her capacity or conduct. Following this decision, the FWC ordered O’Malley’s Operations in September 2023 to compensate the worker with $6,095 within 14 days.

Despite attempts to secure voluntary compliance, the compensation remains unpaid. With potential penalties including:

• up to $93,900 for O’Malley’s Operations Pty Ltd;
• up to $18,780 for operations manager, Riley Panetta-Sleiman; and
• a court order for the company to pay the outstanding $6,095 in compensation with interest.

A directions hearing is scheduled for August 26, 2025, in Sydney.

Dismissal procedures must be just and fair in every single instance

When making the tough decision to end someone’s employment, it’s always important to follow a fair and thorough process, even when the reason seems straightforward. Irrespective of whether there are valid grounds for dismissal, failure to adhere to adequate processes and procedures can potentially result in an employer unsuccessfully defending an unfair dismissal claim.

Thinking about your workplace compliance? Talk to our experts

Don’t let a poorly handled termination come back to bite you. Do your best to avoid the above mistakes. Follow best-practice processes, and seek professional advice when you’re not sure of something, and you’ll be setting yourself (and your business) up for the best possible outcome.

If any of this information has raised questions about your termination procedures or you’ve got another workplace matter you need assistance with, please reach out to our workplace relations experts via our 24/7 HR Advice Line.

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