First published on Friday, August 14, 2026
Last updated on Friday, August 14, 2026
There’s no shortage of cases that serve as examples to every business owner on what can happen if they engage in dubious behaviours or are non-compliant with regulators. Whether it’s an issue with pay or non-compliance in terms of working conditions, you may risk legal action by the Fair Work Commission being taken against you with significant penalties.
Below, there are two examples of cases from Fair Work regarding non-compliant practices, with the first being a Melbourne software company and the other involving the former operators of a Sydney childcare centre.
Penalties against Melbourne software company
KYT Laboratories PTY Ltd provides online healthcare solutions and software. Due to the company not following a Compliance Notice regarding back-pay entitlements owed to a former employee, the Fair Work Ombudsman ordered a total of $39,453 in penalties to be paid, while also imposing a penalty against the director. The case serves a valuable example that irrespective of the type of breach and time, employers should take extra care to remain compliant to prevent penalties and legal action taken against them.
Legal action against former operators of Sydney childcare company
The previous operators for Sunshine Early Learning Centre have had legal action taken against them by the Fair Work Ombudsman for alleged underpayments to two former employees. They were previously issued with a Compliance Notice regarding the alleged underpayments involving failing to pay the former employees in their last weeks of employment and not paying their accrued leave. A former manager of the childcare centre is now facing a penalty of up to $19,800 with the company facing up to $99,000.
To avoid becoming another example and dealing with being investigated by Fair Work, we offer businesses an extensive library of HR Documents and a team of employment relations specialists with 24/7 support to ensure you remain compliant. For more information on how we can help your business avoid issues with Fair Work, book a free demo with our team today!
