FWO numbers are in: $1.5 billion in backpay recovered over 3 years

Australia’s workplace watchdog, the Fair Work Ombudsman (FWO), is demonstrating its commitment to fair treatment and compliance in the workplace – and this year’s results speak volumes. With a staggering $1.5 billion in back pay recovered over the last three years, the FWO has made it clear that fairness and compliance are non-negotiable for Australian businesses.

This year alone, the FWO has achieved one of its highest annual recoveries, continuing to prioritise workers’ rights and accountability across industries.

So, what has the Fair Work Ombudsman achieved in 2023-24?

It’s been another busy year for the regulator, following through on its commitment to intensify its compliance enforcement. Focusing heavily on protecting vulnerable migrant workers, targeting high-risk sectors such as aged care, agriculture, and hospitality, while providing tailored support to small businesses to improve compliance with workplace laws.

In 2023-24, the FWO achieved significant results:

• Recovering $473 million in unpaid wages for nearly 160,000 workers – one of the highest annual recoveries to date.
• Over $333 million of the total recovered wages amount came from large corporate employers, benefiting around 110,000 employees.
• Secured a record $21.2 million in court-ordered penalties.
• Filed 64 new litigations.
• Issued 2,574 Compliance Notices, recovering an additional $16.9 million in unpaid wages. 

Read our latest factsheet outlining the millions of reasons to stay on the right side of the FWO.

The year that’s been: notable cases that have shaped the past 12 months

The FWO has a long history of going after businesses for failing to comply with modern awards, employee rights, and National Employment Standards – and this year was no different. We’ve continued to see the regulatory take legal action against businesses that do the wrong, and it’s a reminder for all employers that if you’re engaging in non-compliant behaviour, you will get caught and face the consequences.

Did you know that this year was the first time the FWO commenced legal action using brand-new franchisor liability provisions in the Fair Work Act 2009 (Cth) (FW Act)? And this was just the first of many stern warnings issued this year.

Notable cases include:

• $10.3 million in penalties against Commonwealth Bank of Australia and CommSec.
• Over $4 million in penalties were imposed against the operators and managers of Din Tai Fung restaurants.
• $1.4 million in penalties against the franchisor of the 85 Degrees brand in Australia.

The next 12 months: what is the FWO’s plan?

The 2023-24 Annual Report makes it clear that over the coming 12 months, the FWO will prioritise efficient dispute resolution and selectively target cases for investigation, focusing on supporting vulnerable workers and tackling serious, systemic non-compliance. In line with this approach, the FWO will collaborate with unions, employer organisations, and other regulators, adopting a co-regulation model to educate, detect, and address non-compliance.

Signalling to Australian workplaces that through these efforts the FWO will continue to uphold fairness, enforce compliance, and strengthen protections for vulnerable workers while fostering a culture of accountability and integrity across all sectors.

Thinking about your workplace compliance? Talk to us

As you can see, intentionally underpaying your employees doesn’t just cost your business financially, it can severely damage your reputation, and under new laws commencing from 1 January 2025, individuals can face jail time and huge penalties. While most business owners wouldn’t dream of intentionally committing wage theft, mistakes can and do happen – this is where we can help you. Citation HR can complete a thorough HR compliance audit of your business – and the best part – this service is included in our monthly, cost-effective subscription which is designed to protect your business from costly risks.

Get in touch with our friendly team for a confidential, no-obligation chat to learn more about how we can support your business.

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