The Fair Work Ombudsman regularly prosecutes key advisors, such as HR managers, accountants, bookkeepers and payroll personnel, for accessorial liability under Section 550 of the Fair Work Act 2009 when their client/employer breaches Australian employment laws.
Recent prosecutions
A company, its director and payroll manager have been penalised $143,000 for underpaying workers $18,000.
Director and his Adelaide car windscreens company penalised almost $85,000 after exploiting employees.
HR manager for Oz Staff Career Services personally fined $9920 for role in processing unlawful-deductions and record-keeping breaches.
Director of Step Ahead Security Services Pty Ltd ordered to personally pay $51,400 for underpaying eight casual security guards on the Gold Coast.
Manager responsible for payroll and administrative functions at Crystal Car Wash outlets in Sydney personally fined $10,000.
HR manager found liable as an accessory to his employer’s breach of workplace legislation and personally fined $3750.
Two company directors/shareholders have been personally fined $20,000 each for their involvement in breaches of the Fair Work Act by a 7-Eleven franchise in Victoria. Record fine of $400,000 against a franchisee in Brisbane.
Accountancy firm in Melbourne is facing $54,000 fine for processing wage payments for workers at a fast food restaurant below the award rate.
The Director, restaurant manager and HR manager of a Chinese restaurant chain are facing penalties of up to $54,000 for underpaying workers.
Directors of 7-Eleven retail group are under investigation for wide ranging under-payments and record-keeping breaches across its national franchise network.
Directors of Yogurberry head company are facing penalties of up to $54,000 each for wide range of compliance failures throughout its supply chain.
There can be considerable fines for breaching Fair Work Laws
- Is your firm responsible for payroll or other client administrative functions?
- Do you try to obtain accurate information?
- Do you alert clients to possible breaches?
- Do you actively question instructions if you have doubts regarding legalitry?
If not, you may be at risk of personal fines under Section 550 of the Fair Work Act 2009.
If you’d like to find out more about accessorial liability, contact Sean Wilson from Workforce Guardian on Ph 1300 659 563.
FREE HR HEALTH CHECK FOR KEY ADVISORS
Under section 550 of the Fair Work Act 2009, key business advisors such as accountants and bookkeepers can be held personally liable as an ‘accessory’ for their clients’ breaches of Australian employment law. Workforce Guardian’s FREE Fair Work Liability Check will confirm whether you’re exposed to potential penalties of up to $54,000 for each of your own and your clients’ breaches of Australian employment law. If you answer no/unsure to any of these questions, you should take urgent action to reduce your risk of accessorial and personal liability.
- Get ready for changes to casual and part-time entitlements - 15 February 2018
- FairWork Ombudsman – Recent Employer Prosecutions - 18 December 2017
- Franchisor liability has changed - 10 November 2017
