Recent enforcement action by the Fair Work Ombudsman highlights a clear regulatory focus: protecting migrant workers and addressing workplace underpayments.
In December 2025 alone, the regulator announced legal action and penalties across several industries — including agriculture, financial services and transport. While the circumstances differ, the underlying message is consistent: employers must ensure migrant workers are paid correctly and workplace records are compliant.
Below is a brief overview of several recent cases and the key lessons they highlight for employers.
What Fair Work Is Seeing
Across several investigations and enforcement actions, the Fair Work Ombudsman identified recurring compliance issues involving migrant workers, including:
- Underpaying migrant workers
- Paying flat rates regardless of hours worked
- Making unlawful deductions from wages
- Failing to maintain accurate employment records
These issues appeared across different industries, but followed similar patterns. For the regulator, this reinforces concerns that vulnerable workers may be exposed to systemic payroll errors or non-compliant pay practices.
Case 1: Distribution company operator penalised
The Federal Circuit and Family Court imposed penalties totalling $7,642 against the former operator of Hobart-based Horne Distributors Pty Ltd.
The penalties related to breaches including:
- Failing to provide compliant payslips
- Failing to comply with a Compliance Notice issued by a Fair Work Inspector
The business employed migrant workers performing truck driving and related duties. The regulator pursued court action after the compliance notice was not followed.
Key takeaway for employers:
Ignoring or failing to comply with a Fair Work Compliance Notice can quickly escalate into litigation and financial penalties.
Case 2: Mortgage broking businesses face further litigation
The Fair Work Ombudsman has commenced legal proceedings against Melbourne mortgage broking business Ansa Finance Pty Ltd and its manager.
The regulator alleges:
- More than $30,000 in underpayments
- Failure to pay employees for work performed
- Breaches of award obligations and the National Employment Standards
- Adverse action, including terminating employees after they raised concerns about pay
- Failures relating to payslips and regulatory notices
Two of the affected employees were visa holders.
Key takeaway for employers:
Employees must be able to raise concerns about wages without fear of retaliation. Adverse action claims can significantly increase legal exposure.
Case 3: Vegetable farm accused of $645,000 underpayments
The Fair Work Ombudsman has also commenced legal action against Bulmer Farms Pty Ltd in Victoria for allegedly underpaying 28 migrant workers more than $645,000.
The workers were engaged under the Pacific Australia Labour Mobility (PALM) scheme between 2019 and 2023.
According to the regulator, workers were paid a fixed weekly salary regardless of hours worked, which allegedly failed to account for overtime and other entitlements required under the Horticulture Award.
Other alleged breaches include:
- Underpayment of overtime and public holiday rates
- Unlawful wage deductions
- Breaches of payslip and record-keeping obligations
Key takeaway for employers:
Paying a weekly salary or flat rate without checking award entitlements can result in significant underpayment liabilities.
Why These Cases Matter
Migrant workers are often classified as vulnerable employees under workplace laws.
This means regulators may apply:
- Greater scrutiny during investigations
- Higher penalties where breaches occur
- Less tolerance for payroll errors or inadequate compliance systems
Employers engaging migrant workers are therefore expected to take extra care — not less — to ensure compliance with workplace laws.
Key Lessons for Employers
While these cases arise from different industries, they highlight several consistent compliance risks:
- Migrant workers must receive the same minimum entitlements as any other employee
- Salaries and flat pay rates must still satisfy modern award obligations
- Accurate time records and payslips are mandatory
- Compliance processes should be reviewed regularly, not assumed
Being busy or relying on outdated payroll systems will not prevent enforcement action.
Ask Yourself
Employers may wish to consider a few practical questions:
- Do you know which modern award applies to each employee in your workforce?
- Are migrant workers being paid correctly for all hours worked, including overtime and penalty rates?
- Could your payroll records withstand a Fair Work audit today?
If the answer to any of these questions is unclear, the risk may be higher than expected.
Not Sure Where You Stand?
Fair Work enforcement activity continues to increase — particularly where vulnerable workers are involved.
Taking a proactive approach to payroll and workplace compliance can significantly reduce the risk of investigations, penalties and reputational damage.
Harrisons can assist with payroll reviews, workplace compliance audits and practical advice to help employers stay compliant.
Claire Harrison is the Founder and Managing Director of Harrisons, a flourishing HR consulting business that sprouted in 2009 from Claire’s passionate belief that inspiring leaders and superstar employees are the key success factor to any business. With over 20 years’ experience, Claire has worked as a HR Director of multi-national organisations, as a Non-Executive Board Director, and a small business owner. Claire’s corporate career includes working with companies such as BHP, Westpac, Fonterra and Mayne Nickless.
