Workplace compliance in focus: Fair Work Ombudsman report signals growing enforcement and support for employers

The Fair Work Ombudsman’s latest annual report reveals record recoveries and enforcement action in 2024–25 with important implications for early childhood education and care services seeking to build compliant, fair and supportive workplaces.

The Fair Work Ombudsman (FWO) has released its 2024–25 Annual Report, confirming a year of significant compliance activity across Australian workplaces. Key findings including the recovery of $358 million in underpayments and an increase in anonymous tip-offs.

According to the report, more than 249,000 workers were repaid wages in the past financial year, with 60 per cent of recovered funds ($213 million) stemming from large employers. In total, more than $2 billion has been recovered by the FWO over the past five years.

In addition to back payments, the FWO secured a record $23.7 million in court penalties, issued 1,220 compliance notices, and launched 73 new legal proceedings. Notably, infringement notices for record-keeping and payslip breaches resulted in $838,000 in fines, a reminder that enforcement extends beyond remuneration issues.

The report also confirmed growing engagement with the FWO’s guidance materials. In 2024–25, fact sheets were viewed 2.7 million times with parental leave and related entitlements ranking as the second most viewed fact sheet overall.

This strong uptake is particularly relevant for ECEC providers, many of whom operate family-focused services staffed by a predominantly female workforce. Ensuring clarity around entitlements such as parental leave, flexible work, and redundancy provisions is essential for service owners and managers aiming to support staff wellbeing and meet compliance requirements under the Fair Work Act 2009 and the National Employment Standards.

Complementing the fact sheets, the FWO’s best practice guides, designed to promote fair, inclusive and productive workplaces were downloaded more than 580,000 times. The most popular of these was the guide on parental leave, followed by resources on workplace privacy and flexible working arrangements.

For ECEC services, integrating these best practices into internal policies and procedures not only reduces legal risk but also supports staff retention, workplace culture, and equitable workforce participation, key priorities in a sector affected by workforce shortages and high turnover.

While the report spans the broader Australian economy, several findings are especially relevant to the early childhood sector:

• Underpayment remains a key focus: Services must ensure correct application of award entitlements, overtime, allowances, leave and superannuation, particularly where casual, part-time or trainee staff are employed.
• Large employers under scrutiny: Multi-site providers or those managing multiple services are advised to review governance and compliance frameworks to ensure systems scale effectively.
• Record-keeping expectations rising: Infringement notices highlight the need for accurate, auditable records,including rosters, timesheets and payslips, consistent with both workplace and ECEC regulations.
• Young workers are more likely to report breaches: Of the 25,608 anonymous reports received, 33 per cent came from workers aged 15–24, a group well represented in the ECEC workforce. Providers must create safe, transparent channels for feedback and concerns.
• Remediation resources available: The FWO has released a Payroll Remediation Program Guide to assist employers who identify systemic underpayments.

To maintain best practice and meet rising compliance expectations, ECEC services are encouraged to:

• Conduct a full audit of employment contracts, award coverage, leave entitlements and superannuation compliance
• Review payroll systems and governance structures, particularly if external providers are used
• Ensure managers understand the Children’s Services Award 2010 and other applicable instruments
• Implement accessible systems for staff to report issues safely and without fear of reprisal
• Integrate FWO best practice guides into HR policies and onboarding materials
• Regularly review updates from the FWO and early childhood regulatory authorities

With workplace compliance under sustained national focus, ECEC services have a clear opportunity to lead through best practice. Beyond avoiding penalties, robust governance and strong employee engagement build trusted, high-quality environments for both educators and children outcomes that benefit the entire community.

Access the 2024/25 annual report on the Fair Work Ombudsman website.