IT Company Director Personally Ordered to Pay Almost $150,000 in Underpayments – A Clear Warning for Business Owners
Posted on February 10, 2026 by The HR Bridge Team
On 3 June 2026, the Fair Work Ombudsman secured a significant win against the director of a failed IT services company. David Mark Blumentals, the sole director and shareholder of D365.Group Pty Ltd, was ordered to personally rectify nearly $150,000 in underpayments to 16 workers and pay a $35,308 penalty.
The company, which specialised in Microsoft Dynamics 365 and Power BI services, underpaid 16 IT consultants based in Sydney, Melbourne and Brisbane between October 2021 and December 2022. Seven of the workers were visa holders. The underpayments totalled $148,812 and included unpaid annual leave on termination, outstanding final wages, and (in one case) payment in lieu of notice.
What makes this case particularly important is that the company was placed into liquidation in 2023. Despite this, the Court still held the director personally accountable.
Why This Matters for Business Owners and Directors
Judge Gillian Eldershaw found that the underpayments were deliberate. Mr Blumentals had been involved in a previous underpayment case in 2019 involving the same types of entitlements. The Court noted he showed no contrition and made no genuine effort to fix the shortfalls. Instead, he made baseless claims against the affected workers.
The Judge highlighted two key points that every company director should take seriously:
- Directors and individuals involved in deliberate underpayments can be pursued personally — even after the company has been wound up.
- The penalty needs to be high enough to deter similar behaviour and remove any commercial advantage gained by underpaying staff.
Fair Work Ombudsman Anna Booth reinforced this message: “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 Employers
- Personal liability is real.Being the director does not shield you if you are involved in (or turn a blind eye to) underpayments.
- Past non-compliance increases risk.Previous court findings or Fair Work action can be used as evidence of knowledge and deliberateness.
- Visa holders have the same rights.The FWO continues to prioritise cases involving temporary visa holders.
- Liquidation does not erase the debt.Courts can still order individuals to pay compensation plus interest
Practical Steps Businesses Should Take Now
- Conduct regular payroll and entitlement audits (especially final pay and annual leave on termination).
- Ensure directors and managers understand their personal exposure under the Fair Work Act.
- Keep clear records of all payments and employment entitlements.
- Seek professional advice early if you suspect gaps or systemic issues.
At HR Bridge Australia, we help SME owners and directors stay compliant with Fair Work obligations. From award interpretation and payroll reviews to termination processes and policy development, our focus is practical, commercial compliance that protects both the business and the people running it.
If you would like a confidential review of your current payroll and termination processes, or simply want peace of mind that your business is meeting its obligations, feel free to get in touch.
Need free advice? You can also contact the Fair Work Ombudsman directly on 13 13 94 or visit www.fairwork.gov.au.
Staying compliant is not just about avoiding penalties — it’s about building a sustainable, reputable business.
