A Growing Pattern: Employers Under Fire for Wage and Compliance Breaches

Australia’s Fair Work Ombudsman (FWO) has intensified its crackdown on wage theft, unlawful deductions, and non-compliance with workplace laws — and recent court cases reveal a troubling trend of deliberate misconduct.

In one Federal Court decision, an employer was found to have made unauthorized deductions from an employee’s wages totalling nearly $46,800, without any contractual basis. Although only part of that amount was recoverable due to statutory limits, the case highlights how systemic underpayment can persist for years before being addressed.

The FWO’s enforcement activity across 2024–25 has targeted a range of contraventions, including underpayment of wages, record-keeping and payslip breaches, sham contracting, adverse action, and failures to comply with compliance notices.

• In Melbourne, an electrical services company was fined $29,700 for breaches affecting a young worker.

• In Brisbane, a transport company was penalised $31,550 and ordered to comply with a prior compensation order for unfair dismissal.

• In Victoria’s construction sector, two firms were fined a combined $67,347 for wrongdoing that disadvantaged carpenters.

• Meanwhile, Procraft, a residential building company, was found to have committed “deliberate and serious” breaches, leading to significant penalties.

These cases underline a concerning pattern: many Fair Work breaches are not isolated administrative oversights but deliberate, sustained practices that show a disregard for employees’ rights and legal obligations.

With growing public scrutiny and stronger enforcement powers, the message from regulators is clear — wage theft and non-compliance will not go unchecked.