IT Fair Work Case Study
Most employers are not HR professionals, so this can lead to them creating HR risk without them even knowing it.
★★★★★Trusted by thousands of Australian businesses · No credit card required
$125,600
($20,600 for the owner and $105,000 for the company)
$29,239
$5,646
(ordered by the court)
$6,380
(for underpaying an employee almost $6,000)
Case overview
A Brisbane-based IT business and its owner were penalised a total of $125,600 for failing to comply with Fair Work Commission orders to compensate an unfairly dismissed employee. The company had been ordered to pay the employee $20,769 in compensation and $8,470 in legal costs in 2014 but failed to do so despite repeated requests.
Following legal action by the Fair Work Ombudsman, the Federal Circuit Court imposed penalties of $105,000 on the company and $20,600 on its owner. The company was also ordered to pay the outstanding $29,239 in compensation and costs, plus $5,646 in interest. This was a record penalty for failing to comply with an unfair dismissal compensation order.
The case was the second time the business and its owner had faced Fair Work penalties, having previously been fined $6,380 in 2011 for underpaying an employee.
Case facts
What they should have done
Once the owner was aware that they had underpaid employees, they should have reviewed the wages of all current staff members to ensure they were paid according to the award. Additionally, the owner needed to follow proper legislation requirements for termination. This would include proper documentation of performance management meetings.
How Happy HR could have helped
HR consultant guidance
Documented and timestamped meetings
Employee Award Interpretation
Happy HR ROI$125,600 = 23 years of Happy HR subscription
Got questions?
Frequently asked questions
What happened in this IT Fair Work case study?
A Brisbane-based IT business and its owner were penalised a total of $125,600 for failing to comply with Fair Work Commission orders to compensate an unfairly dismissed employee. The company had also failed to pay the outstanding compensation and legal costs despite repeated requests.
Why was the IT business penalised?
The business failed to comply with orders requiring it to pay an employee $20,769 in unfair dismissal compensation and $8,470 in legal costs. The Fair Work Ombudsman took legal action after the company and its owner failed to meet their obligations.
What were the consequences for the business and its owner?
The Federal Circuit Court imposed penalties of $105,000 on the company and $20,600 on its owner. The company was also ordered to pay $29,239 in outstanding compensation and costs, plus $5,646 in interest. This was a record penalty for failing to comply with an unfair dismissal compensation order.
What should the IT business have done differently?
The business should have complied with the Fair Work Commission’s orders, paid the required compensation and legal costs within the specified timeframe, and maintained proper HR processes to manage employee dismissals and workplace disputes.
How could Happy HR have helped prevent these HR issues?
Happy HR could have supported the business through professional HR guidance, compliant termination processes, documented performance management, and employee award interpretation. These services can help businesses make informed employment decisions, maintain proper records, and reduce the risk of workplace disputes.
See how Happy HR helps IT businesses manage fair dismissal processes and reduce HR risks
Want a direct comparison against your current HR system?
Tell us which platform you use today and what you want to improve. We have many new clients that come from other platforms to Happy HR.
We can demonstrate the relevant Happy HR capabilities, discuss integration and implementation requirements, and help you assess whether the platform is the right fit.
Trusted by thousands of Australian businesses and partners.
Featured customers
Capterra