Recent Fair Work enforcement activity shows a clear pattern: automotive dealerships and repair businesses are under sustained scrutiny, particularly around award compliance, record-keeping and response to Fair Work Ombudsman (FWO) notices.
Below are the most relevant developments and what they mean for employers.
1️⃣ Wage Underpayments Remain a Major Enforcement Focus
Fair Work action throughout 2024–2025 has consistently targeted underpayments under the Vehicle Repair, Services and Retail Award 2020 and the National Employment Standards (NES).
Recent examples include:
- November 2025: An automotive repair business operator was penalised for failing to comply with an FWO Compliance Notice, with the Court stressing that such notices are serious enforcement tools — not optional requests.
- April 2025: Legal action commenced against a used car dealership in South-East Queensland for allegedly failing to pay out accrued annual leave on termination and failing to comply with a Compliance Notice to back-pay over $7,800.
- 2024: Multiple entities within Eagers Automotive Limited entered into an Enforceable Undertaking with the FWO, resulting in over $16 million in back-payments to current and former employees following a self-initiated payroll review after acquisitions.
Why this matters: Underpayments often arise from incorrect classifications, overtime calculations, penalty rates, or leave accruals, rather than deliberate misconduct — but penalties still apply.
👉 Action tip: Regular payroll audits (especially after acquisitions, restructures or system changes) are now essential risk management.
2️⃣ Compliance Notices Must Be Treated as Urgent
Recent court decisions have made it clear that failing to comply with an FWO Compliance Notice can itself attract penalties, separate from the underlying underpayment.
Judges have explicitly stated that Compliance Notices exist to protect employees and deter non-compliance — and ignoring them will not be treated lightly.
👉 Action tip: If you receive an FWO Compliance Notice, seek advice immediately and respond within the required timeframe. Silence or delay significantly increases exposure.
3️⃣ Annualised Salaries Are Not a “Set and Forget” Solution
Federal Court decisions continue to reinforce that:
- An annual salary must fully compensate an employee for all award entitlements in each pay cycle, not just on average.
- Employers must keep accurate records of hours worked, including overtime.
- A general “buffer” above award rates cannot be relied upon to cover peak workloads or extended hours in certain periods.
This is particularly relevant in automotive businesses where workloads fluctuate due to seasonal demand, sales events or staffing shortages.
👉 Action tip: Review annualised salary arrangements and ensure reconciliation processes are in place — especially for Technicians, Service Advisors and sales roles.
4️⃣ Public Holiday Rules Clarified by the Courts
A recent Full Federal Court decision, which the High Court declined to review, confirmed that:
- Employers must request employees to work on public holidays — they cannot simply roster them on by default.
- The request must be reasonable, taking into account the nature of the work and the employee’s circumstances.
This has direct implications for service departments and dealerships that operate on public holidays.
👉 Action tip: Ensure rostering processes clearly document public holiday requests and employee responses.
5️⃣ Superannuation & Payday Super — What’s Coming Next
From 1 July 2026, Australia moves to Payday Super, requiring superannuation contributions to be paid at the same time as wages (rather than quarterly), generally within 7 days of payday.
While not yet in force, this change will significantly affect payroll timing and cashflow.
👉 Action tip: Engage with your payroll provider early to ensure systems are ready before the change takes effect.
Key Takeaway for Employers
Fair Work enforcement is no longer reactive — it is systematic and industry-specific. Employers are expected to:
- Know their award obligations
- Maintain accurate records
- Respond promptly to regulators
- Regularly review pay structures and classifications
Proactive compliance is now far less costly than remediation after enforcement.