Unpaid annual leave costs Sunshine Coast transport company more than double what it owed
Posted on September 24, 2026 by The HR Bridge Team
When an employee leaves, their unused annual leave has to be paid out. It’s one of the most basic obligations under the National Employment Standards — and ignoring it has just cost a Sunshine Coast transport company far more than the leave itself.
The outcome
On 23 September 2026 the Fair Work Ombudsman (FWO) announced it had secured $16,155 in penalties and back-pay orders in the Federal Circuit and Family Court against Barco Traders Pty Ltd and its sole director, Daniel John McGettigan.
Barco Traders runs a business transporting food waste from supermarkets.
Order | Amount |
Penalty against Barco Traders Pty Ltd | $7,500 |
Penalty against Daniel John McGettigan (imposed earlier) | $3,990 |
Back-pay ordered to the worker | $4,665 |
Total | $16,155 |
What happened
The case involved one worker, employed full-time as a truck driver from December 2021 to June 2023. After he left, he asked the FWO for help.
In December 2023 a Fair Work Inspector issued Barco Traders a Compliance Notice, having formed a belief that the company hadn’t paid out the driver’s accrued but untaken annual leave when his employment ended — an entitlement under the Fair Work Act’s National Employment Standards.
The notice required the company to calculate and back-pay what was owed. When the FWO filed proceedings in March 2025, it alleged the amount required to comply was $6,950. The company didn’t comply, and the court has now penalised both the business and its director.
The maths of non-compliance
Had Barco Traders acted on the notice in late 2023, the matter would have ended there. Instead, it now faces penalties of $11,490 on top of the back-pay order — and that’s before legal costs and the time spent in court over nearly three years.
The maximum penalties were higher still: up to $46,950 for the company and $9,390 for Mr McGettigan.
The regulator’s message
Fair Work Ombudsman Anna Booth said employers who don’t act on Compliance Notices should understand that courts can impose penalties on top of ordering them to pay workers what they’re owed.
Lessons for employers
Unused annual leave must be paid out on termination. Under the NES, when employment ends, any accrued but untaken annual leave must be paid at the rate the employee would have received had they taken it. This applies however the employment ends — resignation, dismissal or redundancy.
Check the final pay before the employee walks out the door. Wages owing, unused annual leave and any notice, redundancy or long service leave entitlements all need to be included. Awards, agreements and contracts may also set deadlines for paying it.
A Compliance Notice is a chance to fix things without going to court. If you receive one, pay what’s owed or get advice and engage with the FWO before the deadline.
Directors are personally on the line. Mr McGettigan was penalised individually for his involvement. A small company structure offers no shield.
Small claims still go to court. This case involved one worker and a few thousand dollars. The FWO pursues non-compliance regardless of size.
For workers
If you’ve left a job and weren’t paid your unused annual leave or other final entitlements, contact the Fair Work Ombudsman for free help at fairwork.gov.au or on 13 13 94.
Source: Fair Work Ombudsman media releases, 17 March 2025 and 23 September 2026. This post is general information, not legal advice.
