Imagine your business getting a knock on the door from the Fair Work Ombudsman, but you’re not alone in the firing line - your external accountant or advisor is right there with you. That’s the reality for a Gold Coast transport company and its accountant, who are now facing legal action over unpaid employee entitlements. If you think business advisors are safe from liability, think again.
The Fair Work Ombudsman (FWO) has taken a bold step in its enforcement of workplace laws by not only targeting a Gold Coast-based long-distance road transport company, AWT Transport Pty Ltd, but also its external accountant, Robert Reynolds. This is a wake-up call for small and medium businesses across Australia. If you’re using external professionals for HR, payroll, or compliance, this case should make you sit up and reassess your risk management practices.
Background:
AWT Transport allegedly underpaid a casual driver by not adhering to the cents-per-kilometre rate stipulated under the Road Transport (Long Distance Operations) Awards 2010 and 2020. After investigating, the Fair Work Ombudsman issued a Compliance Notice in November 2022 requiring the company to calculate and back-pay the worker’s entitlements—a total of $11,917. But AWT Transport didn’t comply, and their accountant, Mr. Reynolds, who was authorised to handle the response, didn’t take the necessary action either.
This isn’t just another case of a company failing to comply with workplace laws. This is the first time the Fair Work Ombudsman has pursued legal action against an external advisor for their involvement in such a breach. The penalties are no joke: AWT Transport faces fines of up to $33,300, and Mr. Reynolds could be penalised up to $6,660. But more importantly, this case sets a precedent that accountants, HR consultants, and other external advisors can also be held accountable.
For business owners, this is a stark reminder: ignorance isn’t bliss, and outsourcing doesn’t mean out of mind. Whether you’ve got an external accountant, HR consultant, or lawyer handling your compliance, they need to be on their game—or you could both end up in hot water.
So, what’s the takeaway here for small and medium businesses? It’s simple: Compliance is not just a box-ticking exercise; it’s a critical component of business risk management. Here are three key lessons from this case:
It’s time to take action. Don’t wait until you’re facing penalties or court orders to realise that your current setup isn’t working. Whether you’re unsure about your current compliance status or simply want peace of mind, now is the time to review your arrangements.
The case against AWT Transport and their accountant is a cautionary tale for every business owner who thinks, “That won’t happen to me.” The truth is, it could. The only way to safeguard your business and your advisors is through proactive management, robust systems, and choosing the right partners to guide you.
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