Underpayment of Wages — Why you can’t afford to get it wrong

South Australian Business News  •  Industrial Relations
Elisa Luck
Thursday, August 7th 2025
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The Fair Work Ombudsman has successfully pursued legal action resulting in more than $14,000 in penalties against a Melbourne-based weekend community language school and its former volunteer chairperson.

The Federal Circuit and Family Court imposed a $13,320 penalty on Western Chinese Language School Incorporated, which operates in Braybrook, and an additional $825 penalty against the former chairperson of the school’s board, despite their voluntary role.

The penalties followed the school’s failure to comply with a Compliance Notice issued by the Fair Work Ombudsman, which required the organisation to back-pay four Chinese language teachers employed between October 2016 and June 2021. The notice related to underpayment of minimum entitlements under the relevant workplace laws.

This case is a clear reminder that all employers, regardless of their structure or not-for-profit status, must meet their obligations under the Fair Work Act. Leaders, including board members and volunteers in decision-making roles, should ensure compliance is a priority.

It also highlights the importance of complying with Compliance Notices and that non-compliance may result in further legal consequences.

The South Australian Business Chamber encourages all employers to review their legal obligations and seek guidance where needed. Proactive compliance helps protect your business, your people, and your reputation.

For support on understanding your obligations as an employer, contact the South Australian Business Chamber’s Workplace Relations team on (08) 8300 000 (select option 1).

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