Melbourne Transport Company Faces Court Over Unpaid Unfair Dismissal Compensation

On 5 June 2026, the Fair Work Ombudsman (FWO) commenced legal action against Vardan Towing & Transport Pty Ltd (based in Truganina, Melbourne) and its sole director, Kiranpreet Singh Dhaliwal, for allegedly failing to fully comply with a Fair Work Commission (FWC) order to pay compensation to an unfairly dismissed worker.

This case underscores a critical message for all Australian employers: Fair Work Commission orders must be taken seriously and complied with promptly.

What Happened?

• The company employed a transport co-ordinator/dispatcher from September 2023 until dismissing him in May 2024.
• The Fair Work Commission found the dismissal was unfair and ordered the company in January 2025 to pay the worker $27,375 in compensation within 14 days.
• While some payments were made, more than half of the compensation reportedly remains outstanding.
• After unsuccessful attempts to secure voluntary compliance, the FWO has taken the matter to court.

The company faces penalties of up to $99,000, while the director faces penalties of up to $19,800. The FWO is also seeking a court order for the outstanding amount plus interest. A directions hearing is scheduled for 13 July 2026 in the Federal Circuit and Family Court in Melbourne.

Key Message from the Fair Work Ombudsman

Fair Work Ombudsman Anna Booth emphasised:

“It is fundamental for the integrity of the workplace relations system that Fair Work Commission orders are complied with. A sum of more than $27,000 is significant for any worker, and the Fair Work Ombudsman is prepared to take legal action to ensure that employees receive all compensation they are lawfully entitled to.”

Important Lessons for SMEs

Unfair dismissal claims and FWC orders are not something businesses can ignore. Failure to comply can result in:

• Significant court penalties (on top of the original compensation)
• Personal liability for directors
• Additional interest and legal costs
• Reputational harm

This is especially relevant for transport, logistics, and other small-to-medium businesses where employment disputes can arise quickly.

How HR Bridge Australia Helps You Stay Protected

At HR Bridge Australia, we help Perth and WA SMEs (and businesses across Australia) manage employment risks effectively with practical support:

• Unfair dismissal risk assessments and best-practice termination processes
• Custom employment contracts, policies, and performance management to minimise disputes
• Compliance gap analyses and award interpretation
• Representation and response support for Fair Work matters
• Full outsourced HR support including record-keeping, and dispute resolution

Proactive HR management helps prevent costly litigation and ensures you meet your obligations confidently.

Don’t risk personal or business penalties by delaying compliance. Get expert guidance before issues escalate.

Need help with contracts, termination processes, compliance reviews, or unfair dismissal matters? Contact HR Bridge Australia today for a no-obligation consultation.

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