The Fair Work Ombudsman has commenced legal action against the former owner-operator of an IT services company, alleging he was involved in underpaying workers almost $150,000.
Facing court is David Mark Blumentals, who was the sole director, shareholder and company secretary of D365.Group Pty Ltd, which was placed into liquidation in 2023.
D365.Group Pty Ltd was in the business of modifying, selling, deploying and providing services to clients in relation to Microsoft enterprise software products, including Dynamics 365 (a customer relationship management program) and Power BI (a reporting tool).
The Fair Work Ombudsman investigated the company after receiving requests for assistance from several workers.
It is alleged the investigation discovered that Mr Blumentals was involved in his company underpaying 16 workers a total of $149,240 under the Fair Work Act between October 2021 and December 2022.
The allegedly underpaid workers were all IT consultants who were based in Sydney, Melbourne and Brisbane. Seven of the workers were visa holders.
It is alleged that all 16 workers were not paid their accrued annual leave entitlements at the end of their employment and that 12 of them were not paid their wages in full for the final weeks of work they performed.
One was allegedly also underpaid payment in lieu of notice of termination entitlements.
Alleged individual underpayments range from $4,581 to $23,749.
The Fair Work Ombudsman alleges that Mr Blumentals had sole or primary responsibility for all aspects of D365.Group Pty Ltd's operations, including human resources functions and arranging payment of employees and that therefore he was an accessory to the alleged contraventions of the company.
The Fair Work Ombudsman is seeking that the court impose penalties against Mr Blumentals as well as an order that he personally pay any amounts owed by his company to the employees.
Fair Work Ombudsman Anna Booth said business operators need to be aware that they can be pursued in court even in circumstances where their company has been wound up.
"There is a strong public interest in demonstrating our commitment to taking enforcement action to ensure individuals are held to account for alleged involvement in significant employee underpayments," Ms Booth said.
"Whether against directors, owners or any other individual accessory, we will continue to take court actions to help employees and to seek penalties to deter breaches.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
Mr Blumentals faces penalties of up to $13,320 per breach for multiple alleged breaches of workplace laws.
The Fair Work Ombudsman is also seeking an order requiring Mr Blumentals to personally rectify the alleged underpayments in full plus interest.
A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 15 September 2025.
The Fair Work Ombudsman filed 43 litigations that included alleged accessories in 2023-24. The FWO secured total penalties of $1,936,907 against individuals as accessories in the same year.
The FWO filed 146 litigations against employers involving visa holder workers, and secured nearly $23 million in penalties in cases that have included visa holder workers, in the seven financial years to June 2024.
