Brief

"On 17 January 2025, the Fair Work Ombudsman issued an update regarding Road transport company penalised. A road transport company in south-west Sydney and its director were penalized a total of $7,200 for breaching the Fair Work Act by failing to comply with a Compliance Notice requiring back-payments to a worker employed as a full-time truck driver."

17 January 2025The Fair Work Ombudsman has secured a total of $7,200 in penalties in court against a road transport company in south-west Sydney and one of its directors.The Federal Circuit and Family Court has imposed a $6,000 penalty against KTM Express (NSW) Pty Ltd, based in the Macarthur Region, and a $1,200 penalty against company director Teresa Mamone.The penalties were imposed in response to KTM Express (NSW) Pty Ltd breaching the Fair Work Act by failing to comply with a Compliance Notice requiring it to back-pay a worker it employed as a full-time truck driver between November 2018 and March 2021.Ms Mamone was involved in the contravention.KTM Express (NSW) Pty Ltd back-paid the worker $30,321 in entitlements only after the Fair Work Ombudsman commenced legal action.Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.“When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties in addition to back-paying workers,” Ms Booth said.“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”The FWO investigated after receiving a request for assistance from the affected worker.A Fair Work Inspector issued a Compliance Notice to the company in March 2022 in response to the worker being underpaid meal allowances, overtime rates and penalty rates for working early and on public holidays, owed under the Road Transport and Distribution Award 2010 and Road Transport and Distribution Award 2020.Judge Robert Cameron found that there was a need to impose penalties to deter other employers from similar non-compliance in the future.“The road transport industry is a large industry and its participants should not think that Compliance Notices can be put in a drawer and ignored as KTM appears metaphorically to have done,” Judge Cameron said.Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. An interpreter service is available on 13 14 50. Employees can also seek information from their employer or their union, if they are a member.The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.Small businesses can find targeted resources at the Small Business Showcase.
Follow the Fair Work Ombudsman @fairwork_gov_au or find us on Facebook www.facebook.com/fairwork.gov.au.

Sign up to receive the Fair Work Ombudsman’s media releases direct to your email inbox at www.fairwork.gov.au/emailupdates.

Media inquiries:
Ryan, 0411 430 902, media@fwo.gov.au

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Purpose

The Fair Work Ombudsman has secured a total of $7,200 in penalties against KTM Express (NSW) Pty Ltd and its director, Teresa Mamone, for breaching the Fair Work Act. The company was found to have failed to comply with a Compliance Notice requiring it to back-pay a worker it employed as a full-time truck driver between November 2018 and March 2021.

Effects on Industry

The penalty imposed by the Federal Circuit and Family Court sends a strong message to employers in the road transport industry that failing to comply with Compliance Notices can result in substantial penalties, in addition to having to back-pay workers. This decision will likely have a significant impact on businesses in the industry, as they will be more inclined to take Compliance Notices seriously and take necessary actions to rectify any underpayment of employees.

Relevant Stakeholders

The road transport company, KTM Express (NSW) Pty Ltd, and its director, Teresa Mamone, are directly affected by this decision. Additionally, other businesses in the industry may be impacted, as they will be aware that non-compliance with Compliance Notices can result in penalties. Employees working in the road transport industry may also benefit from this decision, as they will be more likely to receive their rightful entitlements.

Next Steps

To comply with this update, employers in the road transport industry should ensure that they take Compliance Notices seriously and take necessary actions to rectify any underpayment of employees. If an employer receives a Compliance Notice, they should immediately address the issue and provide back-pay to affected employees. Furthermore, employers should be aware that failing to comply with Compliance Notices can result in penalties, and therefore, it is essential to maintain accurate records and ensure that employees are paid correctly.

Any Other Relevant Information

The Fair Work Ombudsman provides free resources for employers, including a Compliance Notice course, which aims to educate businesses on the importance of complying with Compliance Notices. Employees can also seek information from their employer or union if they are a member. The FWO encourages businesses and employees to visit their website or call the Fair Work Infoline for free advice and assistance about their rights and obligations in the workplace.

Fair Work Ombudsman

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