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Selected cases

Federal Court of Australia · [2026] FCA 415

Fair Work Ombudsman v New Switch Electrical

A Federal Court employment case about Fair Work compliance notices and unpaid employee entitlements.

Federal Court of Australia10 Apr 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • A Fair Work compliance notice is not background admin.
  • A Federal Court employment case about Fair Work compliance notices and unpaid employee entitlements.

Use this to check

  • Do not ignore a Fair Work compliance notice or court timetable.
  • Payroll remediation should include wages, leave, superannuation and interest where relevant.
  • Directors of small employers should make sure someone owns the response and evidence trail.

Decision snapshot

  1. 1

    What happened

    • The Fair Work Ombudsman brought proceedings against New Switch Electrical, an electrical business, and its sole director.
    • A Fair Work Inspector had issued a compliance notice about alleged unpaid wages, superannuation and accrued annual leave for an employee.
    • The respondents did not participate in the proceeding below or the appeal.
    • The lower court imposed penalties but did not make the compensation orders the Fair Work Ombudsman sought.
  2. 2

    What the court had to decide

    • The Court had to decide whether compensation orders could be made where a business failed to comply with a Fair Work compliance notice requiring steps to remedy unpaid employment entitlements.
  3. 3

    What the court decided

    • The Federal Court allowed the appeal and held that the Fair Work Ombudsman was entitled to relief substantially in the terms sought.
    • The Court indicated that New Switch could be ordered to pay compensation for unpaid wages, accrued leave and interest to the Fair Work Ombudsman for remission to the employee, with further submissions on the form of orders.

Practical impact

Practical read

  • A Fair Work compliance notice is not background admin.
  • If it is ignored, the business can face penalties and compensation orders for the employee entitlements that should have been fixed.

Useful next steps

  • Do not ignore a Fair Work compliance notice or court timetable.
  • Payroll remediation should include wages, leave, superannuation and interest where relevant.
  • Directors of small employers should make sure someone owns the response and evidence trail.
  • Calendar every Fair Work notice deadline and court date immediately.
  • Recalculate employee entitlements against the award, NES and superannuation obligations.

Practical read

This case is a blunt reminder for employers: when the Fair Work Ombudsman issues a compliance notice, the clock is already running. It is not enough to ignore the process, wait for default orders, and hope the court will only impose penalties.

The employee issue was concrete. The notice was about unpaid wages, superannuation and accrued annual leave. New Switch and its director did not defend the proceeding properly, did not appear, and penalties were imposed. The appeal was about whether the court could also order compensation connected with the failure to comply with the notice.

The Federal Court said the earlier wage and leave contraventions and the later failure to comply with the compliance notice could be concurrent causes of the employee's loss. In practical terms, businesses should treat a compliance notice like a board-level legal risk: check the calculations, respond on time, get advice and document remediation.

Checks to run

Key points

  • Calendar every Fair Work notice deadline and court date immediately.
  • Recalculate employee entitlements against the award, NES and superannuation obligations.
  • Keep evidence of payments, payslips, superannuation contributions and correspondence.
  • Escalate regulator notices to directors or senior management, not only payroll staff.

Key takeaways

  • Do not ignore a Fair Work compliance notice or court timetable.
  • Payroll remediation should include wages, leave, superannuation and interest where relevant.
  • Directors of small employers should make sure someone owns the response and evidence trail.

Related topics

Employment & WorkplaceConstruction & Trades

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