On 3 June 2026, the Fair Work Ombudsman (FWO) secured a significant court outcome against an IT services company director, highlighting the serious personal consequences for deliberate breaches of workplace laws.

What Happened?

The Federal Circuit and Family Court ordered David Mark Blumentals, sole director and shareholder of D365.Group Pty Ltd, to personally pay nearly $150,000 in compensation to rectify underpayments affecting 16 workers.

In addition, Mr Blumentals was hit with a $35,308 penalty. The company, which provided Microsoft Dynamics 365 and Power BI services, was placed into liquidation in 2023.

The underpayments totalled $148,812 between October 2021 and December 2022. Key issues included:

• Failure to pay accrued annual leave entitlements to all 16 workers upon termination.
• Unpaid wages for final weeks of work (12 workers).
• One worker underpaid in lieu of notice.

The affected workers were IT consultants based in Sydney, Melbourne, and Brisbane — seven of whom were visa holders. Individual underpayments ranged from $4,581 to $23,749.

Director Personal Liability – A Strong Warning

This case is particularly notable because the court held the director personally accountable, even after the company was liquidated. The judge found the underpayments were deliberate, with Mr Blumentals showing no contrition and having a prior history of similar breaches in 2019.

Fair Work Ombudsman Anna Booth stated:

“There is a strong public interest in us taking enforcement action to ensure individuals, while not the legal employer, are held to account for their involvement in significant, deliberate employee underpayments.”

Key Lessons for Australian SMEs

• Directors and business operators can face personal penalties and compensation orders for breaches of the Fair Work Act.
• Underpaying National Employment Standards entitlements (especially annual leave and final pay) carries high risk.
• Companies in liquidation do not shield directors from liability.
• Repeat or deliberate conduct attracts heavier penalties and strong deterrence from the courts.

This serves as a clear reminder that proper payroll, record-keeping, and termination processes are non-negotiable.

How HR Bridge Australia Helps You Stay Compliant

At HR Bridge Australia, we support Perth, WA, and national SMEs with expert guidance to prevent costly underpayment claims and director liability:

• Payroll and award compliance audits (including final pay and leave calculations)
• Custom employment contracts and termination policies
• Performance management and termination processes to minimise disputes
• Compliance gap analyses and record-keeping systems
• Full outsourced HR and compliance support for peace of mind

Proactive compliance protects both your business and your personal assets.

Don’t risk personal liability or large penalties. Get your employment practices reviewed today.

Need help with payroll compliance, contract reviews, or termination processes? Contact HR Bridge Australia today for a no-obligation consultation.

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