Skip to content 
A recent court case has highlighted a critical compliance risk that all small and medium business owners should take seriously.
A Perth-based professional services company, AICA International Pty Ltd, and its former director, Shiju Mathews, have been fined a total of $39,600 for failing to comply with a Fair Work Compliance Notice. The notice required the company to back-pay an employee – a systems and computer engineer who had worked full-time from 2018 to 2022.
Despite being given a chance to fix the issue voluntarily, AICA International did not act. As a result:
- The company was fined $33,000.
- The director was personally fined $6,600.
- The company was also ordered to repay the employee $2,654, plus interest and superannuation.
Why This Matters to You
The Fair Work Ombudsman (FWO) regularly investigates complaints from workers. In this case, the employee simply requested assistance, and the FWO stepped in. Once a Compliance Notice is issued, it’s not optional – it’s a formal direction under the law.
Failing to comply can lead to:
- Costly financial penalties
- Reputational damage
- Personal liability for directors and business owners
What SMEs Can Learn From This
- Take Compliance Notices Seriously – Ignoring them is not only risky – it’s expensive. Acting quickly can often resolve issues without court action.
- Understand Your Award Obligations – In this case, the employee was covered by the Professional Employees Award 2020. Many employers are unaware of the specific entitlements that apply under modern awards.
- Directors Can Be Held Personally Accountable – If you’re actively involved in running the business, you could be fined individually for breaches.
- Fair Work Support Is Free – The FWO offers free advice and tools to help SMEs stay compliant. It’s better to ask questions early than to face penalties later.
