One fine day: record penalty sends strong warning

Macquarie Technology Group International Pty Ltd (MTGI) has been hit with a $125,600 penalty for failing to pay compensation awarded by the Fair Work Commission (FWC) to an unfairly dismissed employee.

The penalty sends a strong message to businesses that there are serious consequences for non-compliance with FWC orders, and is the highest awarded against an employer for failing to pay unfair dismissal compensation.

Background

The FWC ordered MTGI pay $20,769 compensation following a former employee’s successful unfair dismissal application. The order stood after the FWC refused leave to appeal the decision, with the Federal Court dismissing a subsequent appeal in 2016.

Following multiple unsuccessful requests by the Fair Work Ombudsman (FWO) to MGTI to pay the compensated amount, the FWO took legal action against MTGI and its directors.

Federal Circuit Court Judge Salvatore Vasta fined MTGI $105,000, plus interest on the original penalty, and the FWO’s legal costs. In addition, MTGI’s chef executive director was fined $20,600.

What this means for you and your business

This case highlights the willingness of the FWC and the FWO to take legal action against employers who fail to comply with orders.

Macpherson Kelley has significant experience assisting clients in meeting their legal obligations.

If you have any questions or need advice regarding compliance with an order, please contact our Employment, Safety and Migration team.

This article was written by Annabelle Uebergang, Lawyer – Employment, Safety and Migration and Serpil Bilgic, Lawyer – Commercial.