A Quick Summary

The Fair Work Ombudsman (FWO) has initiated legal action against AWT Transport Pty Ltd and its external accountant, Robert Reynolds, for failing to comply with a Compliance Notice regarding underpayment to a driver, marking the first time the FWO has pursued a third-party advisor for compliance breaches, with potential penalties for AWT Transport and Reynolds if found liable.

A recent legal action by the Fair Work Ombudsman (FWO) against AWT Transport Pty Ltd, a Gold Coast-based long-distance transport company, and its external accountant, Robert Reynolds, serves as a key reminder of the importance of regulatory compliance for employers and their advisors in Perth.

The FWO’s action stems from an investigation triggered by a casual driver’s request for assistance. The driver, employed by AWT Transport from February 2019 to August 2021, raised concerns over potential underpayment for kilometres travelled, as regulated by the Road Transport (Long Distance Operations) Awards 2010 and 2020.

Following this, the FWO issued a Compliance Notice in November 2022, directing AWT Transport to rectify the issue and compensate the driver. However, the FWO alleges that AWT Transport did not comply with the notice, lacking a valid reason for the non-payment.

Robert Reynolds, the company’s external accountant tasked with handling the Compliance Notice, is also involved in the case due to an alleged failure to take appropriate action. This case is notably the first instance where the FWO has pursued legal action against a third-party advisor for compliance-related breaches.

According to the FWO, AWT Transport was required to make a payment of $11,917 to the driver as outlined in the Compliance Notice. If found liable, AWT Transport could face penalties of up to $33,300, while Mr Reynolds could incur penalties of up to $6,660. The FWO is also requesting a court order to mandate the payment, including applicable interest and superannuation, to the affected employee.

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Fair Work Ombudsman Anna Booth highlighted that the FWO will take decisive action when companies and their advisors neglect compliance obligations, stating, “Compliance breaches that affect employee rights will not go unaddressed. Even external advisors may face repercussions if they are involved in non-compliance.”

This case was presented at the Federal Circuit and Family Court in Brisbane, with a directions hearing scheduled for 4 November 2024.

The FWO encourages employees with concerns about wages or entitlements to reach out for support. To assist employers, the FWO provides resources such as a Compliance Notice course, aimed at helping businesses understand and respond to compliance directives. This course, along with other resources for small businesses, is available on the FWO’s online learning portal.

For HR Advice Perth, companies seeking to manage HR compliance effectively, consulting with HR specialists can aid in maintaining regulatory standards and mitigating legal risks.