Sydney provider penalised after failing to comply with Fair Work Compliance Notice

A Sydney early learning provider has been penalised more than $11,000 after failing to comply with a lawful Compliance Notice issued by the Fair Work Ombudsman (FWO), in a case that reinforces the importance of wage integrity and timely regulatory response across the early childhood education and care (ECEC) sector.

The Federal Circuit and Family Court imposed a $9,390 penalty against Azmy Enterprises Pty Ltd, which operates Little Abbey’s Academy in Hammondville, and a further $1,878 penalty against the company’s sole director, Abanoub Azmy.

The penalties were imposed after Azmy Enterprises failed to comply with a Compliance Notice requiring it to calculate and back-pay entitlements owed to a full-time early childhood teacher employed between July 2017 and September 2022. 

Although the provider ultimately back-paid the affected worker $23,036, the payment was only made after the FWO commenced legal proceedings. 

The FWO began investigating the matter in 2022 after receiving a request for assistance from the affected teacher.

A Fair Work Inspector issued a Compliance Notice to Azmy Enterprises in June 2023 after forming a belief that the educator had been underpaid minimum wages, an educational leader allowance and annual leave entitlements.

The entitlements were owed under the Educational Services (Teachers) Award 2010 and 2020, as well as the National Employment Standards under the Fair Work Act. 

Acting Fair Work Ombudsman Rachel Volzke said employers who fail to comply with Compliance Notices should be aware they may face court-imposed penalties in addition to being required to back-pay workers.

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and to make payments to workers,” Ms Volzke said. 

The case highlights the consequences for employers who fail to respond appropriately to formal regulatory directions.

In the 2024–25 financial year, the FWO secured more than $870,000 in court penalties for failures to comply with Compliance Notices, reflecting the regulator’s ongoing willingness to escalate matters where employers do not act. 

For ECEC providers, the decision is a timely reminder that wage compliance remains a high-risk governance area, particularly where award interpretation, teacher classifications, educational leader allowances and leave entitlements are involved.

It also reinforces that directors and individuals involved in contraventions can face personal penalties, not only the operating entity.

For approved providers, owners and boards, the case underscores the need for clear payroll governance, accurate award application and prompt engagement with the regulator when concerns are raised.

Compliance Notices are lawful instruments and should be treated as urgent. Failure to act can increase financial, legal and reputational risk, particularly in a sector already subject to heightened scrutiny across workforce, governance and compliance settings.

The Fair Work Ombudsman continues to encourage employers to proactively review payroll systems and employment obligations and to make use of available compliance tools and resources.

The original Fair Work Ombudsman media release can be viewed here: Fair Work Ombudsman media release