FWO commences legal action against Gold Coast-based transport company and accountant

For the first time, the Fair Work Ombudsman has taken legal action against an external professional services provider for alleged involvement in a company’s failure to comply with a compliance notice.

Gold Coast transport company AWT Transport and accountant Robert Reynolds are facing court for failing to comply with a compliance notice issued by FWO inspectors.

Reynolds is an accountant who provided services to AWT Transport and was not an employee of the company.

After receiving a request for assistance from a worker who was employed by AWT Transport, the regulator investigated the company. The employee worked on a casual basis as a driver between February 2019 and August 2021.

A Fair Work Inspector issued a compliance notice to AWT Transport in November 2022 after forming a belief the company had underpaid the cents-per-kilometre rate the worker was entitled to under the Road Transport (Long Distance Operations) Awards 2010 and 2020.

The FWO, therefore, alleges AWT Transport, without a reasonable excuse, failed to comply with the compliance notice, which required it to calculate and back pay the worker’s entitlements.

It is also alleged that Reynolds (the accountant) was directly involved in the contravention because AWT Transport had authorised him to respond to the compliance notice on behalf of the company but he failed to take the required and proper actions.

It is the first time the Fair Work Ombudsman has taken legal action against an external professional services provider for alleged involvement in a company’s failure to comply with a compliance notice.

It is alleged that the amount AWT Transport was required to pay to comply with the compliance notice was $11,917.

“When there is a failure to comply, we will take appropriate action to protect employees. A court can order the payment of penalties and order employers to make payments to workers,” said Fair Work Ombudsman Anna Booth.

“This case also highlights that accountants, like other individuals, can face legal action if they are allegedly involved in a company’s breach.”

The FWO is seeking penalties in court for the alleged failure to comply with the compliance notice. AWT Transport faces a penalty of up to $33,300, and the accountant, Reynolds, faces a penalty of up to $6,660.

The regulator is also seeking an order for the company to pay the alleged outstanding amount of back pay to the employee, plus interest and superannuation.

A hearing in the Federal Circuit and Family Court in Brisbane is scheduled for 4 November 2024.