Lessons for Employers from the Latest Fair Work Ombudsman Action

On 16 January 2025, the Fair Work Ombudsman (FWO) announced legal action against Sergey Stanislavovich Navasardyan, the former operator of Griffon Alpha Group Pty Ltd. The case centres around allegations of significant wage underpayments to security guards in Perth—totalling more than $900,000 across 44 employees.

Between December 2019 and May 2022, workers were reportedly paid flat hourly rates of $21–$25, which fell far below the rates prescribed under the Security Services Award 2010 and 2020. Many of the affected employees were visa holders from non-English speaking backgrounds—often a vulnerable workforce due to language barriers and visa dependency.

The alleged underpayments covered:

• Casual loadings
• Overtime rates
• Penalty rates for weekend and public holiday work
• Shift allowances

Investigators found that over half of the total underpayments were for Sunday work, where employees should have been paid $49–$51 per hour. Some individuals were allegedly underpaid as much as $78,787.

Due to the severity of the allegations, the case falls under “serious contraventions” of the Fair Work Act—meaning potential penalties of up to ten times the standard maximum.

Why this matters for employers

For SMEs—particularly in industries such as security, hospitality, and retail—this case highlights the importance of understanding and complying with award wages and entitlements. Paying employees a flat rate does not automatically mean they are being paid correctly. Employers must ensure that any flat rate includes all relevant penalties, allowances, and loadings as required under the applicable award.

Failure to do so can lead to:

• Heavy penalties – Employers can face fines of up to $133,200 per contravention.
• Back payments – The FWO aggressively pursues unpaid wages, which can add up to hundreds of thousands of dollars.
• Reputational damage – Businesses found guilty of underpayment often struggle to rebuild trust with employees, customers, and stakeholders.

This case also reinforces the FWO’s focus on protecting visa holders and other vulnerable workers, increasing the risk of scrutiny for businesses employing workers on visas.

How does the affect visa holders?

In this case, many of the affected workers were visa holders from non-English speaking backgrounds, making them more susceptible to exploitation. Vulnerable workers often find it challenging to navigate complex workplace laws. This is why it’s essential for employers to be proactive in ensuring they comply with all employment regulations, regardless of the employee’s background or immigration status.

Steps employers should take 

To avoid the risks associated with wage underpayment, SMEs should:

• Conduct regular payroll audits to ensure employees receive their correct entitlements.
• Stay updated on award changes and Fair Work legislation.
• Seek professional HR support to ensure compliance with workplace laws.

At Akyra, our team advises employers to take immediate steps to audit their payroll systems and ensure compliance with all relevant awards and workplace laws. 

It’s always best to seek professional advice if there is any uncertainty regarding obligations, particularly in relation to casual workers and visa holders, to avoid potentially severe consequences.