Posted on January 30, 2026, by The HR Bridge Team
On 18 December 2025, the Fair Work Ombudsman announced that the Federal Circuit and Family Court had imposed a $135,000 penalty on Fajloun Motor Group Pty Ltd, the former operator of an Ultra Tune franchise in Yagoona, western Sydney.
The penalties stem from the company’s failure to comply with a Compliance Notice issued in October 2023, requiring back-payment to a single casual employee in an automotive administration role. The worker, employed from April 2022 to January 2023, was underpaid minimum wages, casual loadings, Saturday penalty rates, and overtime under the Vehicle Repair, Services and Retail Award 2020.
Additional breaches included inaccurate pay slips and employment records. The worker received back-payment only after the FWO initiated legal action.
Fair Work Ombudsman Anna Booth emphasised:
“When Compliance Notices are not followed, we will continue to take legal action to ensure workers receive all their lawful entitlements.”
She added that record-keeping is “the bedrock of compliance” and pay slips provide essential clarity for employees.
Why This Case Matters for Small Businesses
This litigation highlights the serious consequences of ignoring FWO Compliance Notices. Even for a single employee, non-compliance can lead to substantial court penalties on top of back-pay obligations. The automotive repair sector often involves variable hours, casual staff, and penalty rates making accurate award application critical.
Gaps in the “HR bridge” such as misunderstanding awards, poor payroll processes, or inadequate records – can quickly escalate into costly disputes, especially for businesses without a dedicated human resources business partner.
Specialist providers like HR Bridge Australia help small and medium businesses in the retail, automotive, and services sectors build robust compliance systems.
How HR Bridge AU Helps Avoid Similar Risks
HR Bridge Australia offers targeted support to prevent underpayments and ensure compliance failures, acting as a practical Human Resources Business Partner for growing businesses:
- Award Interpretation & Payroll Accuracy — Expert guidance on modern awards like Vehicle Repair, ensuring correct casual loadings, penalties, and overtime.
- Record-Keeping & Pay Slip Compliance — Systems and reviews to maintain accurate records and timely, compliant pay slips.
- Response to FWO Notices — Immediate advice on handling Compliance Notices to resolve issues swiftly and avoid court proceedings.
- Custom Policies & Training — Tailored handbooks, contracts, and staff training on Fair Work obligations.
- Proactive Audits & Support — Free consultations, regular checks, and 24/7 assistance for urgent matters.
Trusted by many employers as the best hr outsourcing company in Australia, HR Bridge AU helps businesses reduce risk while maintaining Fair Work compliance.
By outsourcing HR to certified experts, businesses can focus on operations while minimising the risk of penalties, back-pay, and reputational damage.
The Fajloun Motor Group case demonstrates that prompt action on regulatory notices is essential. Partner with HR Bridge AU to strengthen your compliance framework today.
For advice on award compliance or record-keeping, book a free consultation at HR Bridge AU.
Reference: Fair Work Ombudsman Media Release – 18 December 2025
