First published on Wednesday, August 12, 2026
Last updated on Wednesday, August 12, 2026
One of the most common scenarios that we see in Fair Work cases are back-payments for unpaid wages, superannuation, and annual leave. While many cases involve local businesses and franchisees, the Fair Work Ombudsman isn’t averse to chasing bigger companies for substantially larger amounts.
A recent case involving a US-based coal producer in charge of various coal mines across New South Wales and Queensland is an example of what larger companies can expect for non-compliance with payments.
The underpayment case and Peabody’s cooperation with Fair Work
This case involved Peabody Energy Australia Coal Pty Ltd, otherwise known as Peabody, headquartered in the USA. Due to the Association of Professional Engineers, Scientists and Managers filing proceedings against them, Peabody decided to communicate the issue with the Fair Work Ombudsman. Due to their cooperation, Peabody was able to sign an Enforceable Undertaking where they were given the opportunity to address the instances of underpayment while avoiding court.
The back-payments
After cooperating with Fair Work in the investigation, Peabody was ordered to address nearly five million dollars in back-payments to former employees of the company. This was also due to a judge determining that according to the relevant Black Coal Mining Industry Award 2010 and 2020, staff made redundant were entitled to getting paid out from their personal leave balance of 70+ hours.
While Peabody stated that it had not paid out accrued personal leave to redundant staff, it also admitted that it had assumed by mistake that the payments weren’t necessary. Ultimately, Peabody compensated its former staff for underpayments including superannuation, annual leave, and personal leave balances, with actions taken to prevent similar future issues.
This case highlights the importance of ensuring that your company’s actions are fully compliant with Australian employment laws as whether it’s on purpose or accidental, you can still be held liable by Fair Work. If you need advice and guidance on remaining compliant in your operations, book a free demo with our team today!
