Canberra Electrical Company and Director Hit with Substantial Penalties for Worker Underpayments
A Canberra-based electrical services company and its sole director have been ordered by the Federal Circuit and Family Court to pay a total exceeding $81,500 in fines and compensation. This follows a finding that the business systematically underpaid two of its employees by thousands of dollars, with the court explicitly noting a continued risk of future workplace law breaches.
Court Orders and Judicial Concerns Over Compliance
In a judgment delivered last week, Judge Vanessa-Jane Leishman imposed a $61,000 penalty on Canberra Electrical Solutions and a further $12,200 fine on its director, Tayfun Yildrim. Additionally, the pair were ordered to compensate the two affected workers for back pay and interest, amounting to nearly $8,350, plus any outstanding superannuation entitlements.
Significantly, Judge Leishman highlighted in her ruling that "there remains a risk that it may employ staff and breach workplace laws in the future." She concluded that imposing a serious and meaningful penalty was necessary to compel future compliance with Australia's workplace legislative framework.
A Pattern of Non-Engagement and Failed Compliance
The court proceedings revealed a troubling pattern of disengagement from the legal process. In September 2025, both the company and Mr Yildrim failed to appear for a scheduled hearing, leading to a default judgment against them. This non-participation continued throughout the entirety of the court process.
The Fair Work Ombudsman's investigation was initiated in May 2023 after a former employee sought assistance. By September of that year, the regulator had issued a formal compliance notice demanding the rectification of underpayments. When a second former employee came forward in December 2023, another compliance notice was issued.
Legal counsel for the Ombudsman argued in court that the deliberate failure to comply with these notices not only deprived workers of their rightful wages but also resulted in unnecessary public expenditure by forcing the matter into the court system.
Regulator's Stance on Enforcement and Protecting Workers
Fair Work Ombudsman Anna Booth reiterated her agency's commitment to robust enforcement in a statement from July 2025. "Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers," she stated.
Ms Booth also emphasised the Ombudsman's focus on safeguarding vulnerable workers, particularly young employees who may be less aware of their rights. She encouraged any worker with concerns about their pay or entitlements to contact the Fair Work Ombudsman for free advice and assistance.
This case serves as a stark reminder to all Australian businesses of the significant financial and legal consequences of failing to meet their workplace obligations, with the court's warning underscoring the ongoing scrutiny faced by repeat offenders.
