Fair Work Fires Warning Shot at External Business Advisors: Could Your Accountant Be Next?

Sally Dillon • September 16, 2024

Introduction

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 Case that should have every business talking!


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.



Why this Case is different

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.


What does this mean for your business?


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:

  1. Choose Your Advisors Wisely: Not all advisors are created equal. Your accountant, HR consultant, or any other external advisor must not only be competent but also fully aware of the legal responsibilities that come with their role. Remember, their negligence can cost you dearly.
  2. Stay Informed and Involved: As a business owner, it’s easy to delegate tasks and forget about them, but that’s where the danger lies. You need to be actively involved in compliance matters, even when an external professional is handling them. Regularly check in, ask questions, and ensure everything is up to date.
  3. Invest in Robust HR and Compliance Support: This case illustrates why every business needs to have its house in order when it comes to HR and compliance. At Revolution Consulting Group, we provide strategic HR support and advice tailored to your business. Our Essentials Package is designed to ensure you’re not only compliant but also protected. From customised HR and WHS policies and procedures to ongoing advice and support, we’ve got you covered.




Don't let this happen to you: Take these 3 steps to protect your business


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.

  1. Audit Your Current Practices: Conduct a thorough audit of your HR, payroll, and compliance practices. Identify any gaps and address them immediately.
  2. Engage With Trusted Experts: Partner with professionals who understand the intricacies of Australian workplace laws and can guide you through them. At Revolution Consulting Group, we bring a no-nonsense approach to HR and leadership. We don’t just advise; we partner with you to drive real-world results.
  3. Train and Educate Your Team: Make sure your internal team is well-versed in compliance requirements and understands the importance of adhering to them. Regular training can help avoid costly mistakes and foster a culture of compliance within your business.



Final thoughts: Don't be the next headline

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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