30 March 2022

The Fair Work Ombudsman has secured a total of $74,000 in penalties in court against the operators of a security services company that provided guards for various sites around Perth. 

The Federal Circuit and Family Court imposed penalties of $61,500 against Statewide Security (WA) Pty Ltd and $12,500 against its sole director Richard Michael Clayton. 

The penalties were imposed after the Court found that Statewide Security (WA) Pty Ltd breached the Fair Work Act by failing to comply with three Compliance Notices and a Notice to Produce records or documents, with Mr Clayton found to be involved in the contraventions. 

Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

In imposing the penalties, Judge Allyson Ladhams said, “…general deterrence is an important consideration in this matter and the penalty needs to be sufficiently high to emphasise the impact and consequences of failing to comply with a compliance notice and notice to produce.”

“The important work done by inspectors would be undermined by any perception that compliance with statutory notices is not mandatory,” Judge Ladhams said. 

Her Honour noted the need for specific deterrence was high in this case and said, “I agree with the [Fair Work Ombudsman’s] submission that a meaningful penalty from the Court is required to demonstrate to the respondents that this conduct is not acceptable and will not be tolerated in the future.” 

The regulator investigated after receiving requests for assistance from three workers who had been employed by Statewide Security (WA) Pty Ltd as security guards for various periods between May 2018 and November 2019. 

A Fair Work Inspector formed a belief that the workers had been underpaid entitlements under the Security Services Industry Award 2010, including minimum rates for ordinary hours, overtime, penalty rates for weekend and night work, and under the Fair Work Act in respect annual leave owing on termination in respect of two of the employees.

The inspector issued three Compliance Notices to the company in May 2020 requiring it to calculate and back-pay the workers’ outstanding entitlements. In January that year, the inspector issued a  Notice to Produce records or documents.

In August 2021, the Federal Circuit and Family Court ordered Statewide Security (WA) Pty Ltd to take the steps required by the Compliance Notices and calculate and back-pay the outstanding entitlements, plus interest and superannuation. 

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Small businesses can find targeted resources at the Small Business Showcase.