Fair Work’s Not Playing Around: Penalties for Non-Compliance Just Got Serious

If you are a business owner or manager in Australia, here’s your friendly legal wake-up call: the cost of getting HR wrong has never been higher. As of 2024–2025, the Fair Work Act 2009 has been given sharper teeth. Massive penalties now apply for breaches of employment law - covering everything from underpayment and unlawful termination to workplace harassment and dodgy contracts.

So if your payroll isn’t up to scratch, or your contracts are outdated, or your “compliance strategy” is just hoping for the best... it’s time for a rethink.

So, what’s changed?

Under the new amendments, penalties have skyrocketed to a level that should make even the most relaxed operator sit up:

• Standard breach (large business): Up to $469,500 per contravention (was $93,900)

• Standard breach (small business): Up to $93,900 (was $18,780)

• Serious contraventions (e.g. wage theft, unlawful dismissal): Up to $4.7 million for corporations

• Directors and Officers: Can now be personally liable for breaches under their watch

Oh, and yes - sexual harassment is now explicitly included under the Act. If you are not actively preventing it, you are exposed (legally and reputationally).

What’s this all about?

This isn’t about punishing honest mistakes. It’s about targeting repeat offenders and those businesses doing the wrong thing—particularly around wage theft, unsafe practices, and failure to protect employees from harassment or discrimination. The government’s message? Ignorance is not a defence. It’s your responsibility to know - and follow the rules.

What you need to do (now, not later)

If you are not sure where your business stands, here's where to start:

1. Audit your Payroll

   Are employees being paid correctly, including super, overtime, and penalty rates? Is your software compliant? If you don’t know, find out.

2. Review your contracts

   Do your employment contracts reflect current law and NES obligations? Or are they pulled from a template circa 2012?

3. Train your Managers

   They are the front line. Make sure they understand entitlements, leave, discrimination, and how to respond to complaints (before things escalate).

4. Get your policies in shape

   No more “We should probably have something on that.” You need up-to-date policies on harassment, bullying, pay disputes, safety, and grievance handling.

5. Respond. Don’t ignore.

   If a staff member raises a concern, don’t sit on it. Investigate, document, and take action. Failure to act = breach territory.

   
   

HRxP has your back

Compliance isn’t just about avoiding fines; it is about building a workplace people actually want to be part of.

We help businesses like yours get their HR in order - contracts, policies, audits, training, the whole lot. No drama, no legalese. Just straight-up solutions that work.

If you’re unsure where to start, or you’ve had a little “uh-oh” moment reading this, give us a shout.

Let’s fix it before it costs you.