A Worker Was Underpaid for 10 Years and the Employer Ignored the Compliance Notice — Here Is What Happened Next

$13,791 Missing From a Decade of Work

Imagine discovering that your employer has been underpaying you for an entire decade. Not a few dollars here or there, but $13,791 in total shortfall across wages, overtime, and entitlements. That is exactly what happened to a graphic designer at Hidewood Signs and Print in Albany, Western Australia.

The Fair Work Ombudsman (FWO) investigated, confirmed the underpayment, and issued a formal Compliance Notice directing the employer to back-pay the worker. The employer ignored it. In April 2026, the Federal Circuit and Family Court ordered Hidewood Signs and Print to pay $21,549 in penalties for contraventions of the Graphic Arts, Printing and Publishing Award 2010.

The worker finally received their $13,791 back-pay in June 2025, but only after legal proceedings had commenced. As Fair Work Ombudsman Anna Booth stated: “Where employers do not comply, we will take appropriate action.”

This case offers important lessons for every Australian worker about what happens when underpayment is identified, what a Compliance Notice actually means, and why ignoring one escalates consequences significantly.

What Happened: The Hidewood Case

The graphic designer worked at Hidewood Signs and Print from 2013 to 2023. During that time, the business failed to pay correct rates under the applicable Modern Award. The underpayments covered base hourly rates, overtime penalties, and other entitlements.

When the FWO investigated and confirmed the breaches, they issued a Compliance Notice. This is a formal direction requiring the employer to calculate what is owed and pay it back within a set timeframe. It is not a suggestion. Hidewood did not comply.

The FWO then commenced legal proceedings. The court found multiple contraventions of workplace laws and ordered penalties totalling $21,549. The employer ultimately paid the $13,791 in back-pay, but the penalties came on top of that amount.

It is worth noting that not every underpayment case involves deliberate wrongdoing. Award interpretation can be genuinely complex, and some employers make honest mistakes. However, once the FWO issues a Compliance Notice with clear calculations and a deadline, the expectation is straightforward: pay what is owed. Refusing to act at that point removes any benefit of the doubt.

What Is a Compliance Notice?

A Compliance Notice is one of the enforcement tools available to the Fair Work Ombudsman. Here is how it works:

1. The FWO investigates a complaint or identifies a potential breach
2. If underpayment is confirmed, the FWO calculates what is owed
3. A Compliance Notice is issued to the employer, specifying the amount and a deadline for payment
4. The employer must comply by paying the worker and providing evidence of payment
5. If the employer ignores it, the FWO can escalate to court proceedings
6. Court action can result in penalties on top of the back-pay owed

A Compliance Notice is designed to resolve matters without court involvement. It gives employers a clear, documented path to make things right. The majority of employers who receive one do comply.

Why Ignoring a Compliance Notice Makes It Worse

The Hidewood case illustrates a critical escalation pattern. Here is what ignoring a Compliance Notice triggers:

1. The matter moves from administrative to legal. Court proceedings are initiated.
2. Penalties become possible. Courts can impose fines of up to $93,900 per contravention for companies.
3. The employer’s conduct is on public record. Court decisions are published and searchable.
4. Legal costs accumulate. Both the FWO’s costs and the employer’s own legal expenses add up.
5. Reputation damage follows. The FWO publishes media releases naming non-compliant employers.

In the Hidewood case, the employer paid $21,549 in penalties plus the $13,791 in back-pay. That is a total liability of $35,340 for what started as a $13,791 obligation. Had they complied with the original notice, only the back-pay would have been required. The penalties exist specifically because of the refusal to act.

The message from the FWO is clear: a Compliance Notice is not where enforcement ends. It is where employers get the chance to resolve the matter before it becomes a court case. That opportunity has a deadline, and missing it carries real financial consequences.

How Workers Can Request FWO Assistance

If you suspect you are being underpaid, the Fair Work Ombudsman offers free assistance. Here are the steps:

1. Check your pay against the relevant Modern Award using the FWO’s Pay and Conditions Tool at fairwork.gov.au
2. Gather evidence including payslips, rosters, employment contracts, and bank statements
3. Contact the FWO on 13 13 94 or lodge an enquiry online at fairwork.gov.au
4. Lodge a formal complaint if initial enquiries confirm a potential breach
5. Cooperate with any investigation, providing documents and information as requested
6. Keep records of all communications with your employer about pay concerns

The FWO service is completely free and available to all workers in Australia, including visa holders and casual employees. You do not need a lawyer to make a complaint, and you can contact the FWO anonymously if you prefer. Interpreting services are also available for workers whose first language is not English.

What Protections Exist for Workers Who Speak Up

Australian workplace law includes protections against adverse action. This means your employer cannot legally punish you for:

1. Making a complaint to the Fair Work Ombudsman
2. Asking questions about your pay or entitlements
3. Participating in an FWO investigation as a witness or complainant
4. Exercising a workplace right, such as requesting your payslips

If you experience retaliation for raising a pay concern, that constitutes a separate breach of the Fair Work Act, carrying its own penalties. The FWO takes these matters seriously. Courts have imposed significant fines on employers who take adverse action against workers for exercising workplace rights.

Many workers hesitate to raise concerns because they worry about their job security. The law is designed to address exactly that concern. Your right to question your pay is protected, and any employer who retaliates faces additional legal exposure beyond the original underpayment.

If Something Looks Wrong With Your Pay

The Hidewood worker was underpaid for a full decade before the issue was resolved. That is ten years of lost wages, compounding over time. The earlier you identify a problem, the easier it is to address.

Common signs of underpayment include:

• Your hourly rate does not match what the relevant Award specifies for your classification
• Penalty rates for weekends, public holidays, or overtime are missing or incorrect
• Leave loading is not applied to your annual leave pay
• Casual loading (25%) is absent from your casual hourly rate
• Superannuation contributions appear lower than expected

Pro Tip: Automated Pay Checks Save Time

Calculating your correct pay under a Modern Award involves understanding classification levels, penalty rate structures, allowances, and loading calculations. It is genuinely complex.

Justiico’s automated wage audit analyses your pay against the relevant Modern Award in minutes, not weeks. If something is wrong, you will know exactly what is owed and have the documentation to support a conversation with your employer or a complaint to the FWO.

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The Hidewood case proves that enforcement mechanisms work. Workers who are underpaid have clear, free pathways to recover what they are owed. But the first step is always the same: knowing whether your pay is correct.

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