HR Policy Failures & HR Weaknesses Behind These Cases
- jss2594
- Oct 9
- 2 min read
What links many of these cases are HR policy or practice failures such as:
Lack of effective monitoring systems (e.g. regular auditing of pay, leave, IFAs).
HR leadership ignoring or delaying correction of known non-compliance risks.
Poor record-keeping or use of fake/false records, which violate legal requirements.
Not having policy definitions or procedural clarity, or having policies that say the right things but are not implemented in day-to-day operations.
Non-compliance with compliance notices or court orders when obligations are legally enforced.
Legal & Financial Consequences
Massive civil penalties: The CBA/CommSec case shows organisations can face multi-million-dollar penalties when they fail to embed HR processes that ensure compliance.
Director and manager liability: Individuals can also be fined or held legally responsible, especially when their inaction contributes to the breach.
Compliance notices escalating to legal action: Ignoring or failing to comply with these notices often leads to court action with heavier penalties.
Reputational damage: Although harder to quantify, cases involving large underpayments or deceptive practices draw media attention, which can affect trust, brand, talent recruitment.
New laws and higher maximum penalties: The 2023-24 amendments to the Fair Work Act included increased maximum penalties for non-compliance with compliance notices and for “serious contraventions” of the Act.
What Organisations Should Learn
Audit your HR policies and practices regularly to ensure they not only comply on paper but in practice.
Track and respond to compliance notices quickly. Ignoring formal notices can multiply risk.
Ensure leadership accountability, including HR managers, is built into the oversight structures.
Record-keeping and transparency are non-negotiable. Missing or false records almost always worsen legal exposure.
Train managers and HR teams so they understand both legal obligations and how policy should operate in realistic settings.
In short: Fair Work doesn’t just fine for intentional wrongdoing — it penalises often when policies that should protect employees aren’t enforced, or when organisations treat legal obligations as optional. The cost is financial, legal, and reputational. For any business, investing in strong, well-implemented HR policies isn't just about doing right — it’s about staying out of trouble.
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