Perth switchboard manufacturer ARC Holdings (WA) Pty Ltd, trading as ARC Switchboards, has been penalised $15,000 by the Industrial Magistrates Court for failing to comply with a compliance notice issued by an industrial inspector. ARC’s sole director and secretary, John Griffiths, was also penalised $3,000 for being involved in the company’s contravention.
An industrial inspector from the Department of Energy, Mines, Industry Regulation and Safety issued ARC with a compliance notice in 2023, requiring the company to pay a former employee just over $9,000 in long service leave after it refused to pay when the employee’s employment ended.
ARC only paid the former apprentice once the Department commenced proceedings in the Industrial Magistrates Court seeking penalties against the company and Mr Griffiths. The Court found that the failure to comply with the compliance notice was deliberate and objectively serious.
Rejecting ARC’s argument that there should be no penalties imposed, the Court noted that “the imposition of penalties…is necessary to reinforce the fundamental importance of compliance with the employment standards enshrined in the State’s industrial laws and to ensure that the compliance notice regime serves its intended purpose.”
Private Sector Labour Relations Executive Director Lorraine Field said the decision underscored the importance of employers complying with their employment obligations.
“Employers who ignore a compliance notice issued by an industrial inspector can expect to face hefty consequences. In this case, ARC’s refusal to pay $9,000 in long service leave has cost it far more in penalties” she said.
“The Court’s decision also highlights that individuals can be held liable if they’re involved in a contravention. Mr Griffiths was the controlling mind of ARC, and it was within his power to ensure the company complied with the compliance notice.”
Ms Field noted that the penalties for failing to comply with a compliance notice increased on 31 January 2025, with the maximum penalty for a body corporate now $93,000 and $18,000 for an individual.
Further information on compliance notices can be found at www.demirs.wa.gov.au/PSLRcompliancetools.
Media Contact: DEMIRS media 9222 6102 or media@demirs.wa.gov.au
