What Is the Fair Work Ombudsman?
The Fair Work Ombudsman (FWO) is an independent statutory agency established under the Fair Work Act 2009 that enforces compliance with Australian workplace laws. It provides free advice, education, and assistance to both employers and employees and plays a vital role in maintaining fair, lawful, and productive workplaces across Australia.
The FWO operates alongside the Fair Work Commission (FWC), but with distinct responsibilities—while the FWC makes rulings and decisions on workplace matters, the FWO is focused on education, investigation, and enforcement.
Visit the Fair Work Ombudsman
What Does the Fair Work Ombudsman Do?
The FWO has a wide-ranging mandate to:
- Provide advice and education to businesses and workers about their rights and obligations under the Fair Work system
- Investigate complaints and reports of suspected non-compliance with workplace laws
- Conduct proactive audits of businesses and industries to identify underpayments or breaches
- Take enforcement action, including issuing compliance notices, infringement notices, and commencing legal proceedings
- Promote voluntary compliance by offering tools and resources like pay calculators, award finders, and best practice guides
- Support small businesses with tailored guidance and templates to help them meet their employment obligations
Fair Work Ombudsman vs. Fair Work Commission
It's important to distinguish the Fair Work Ombudsman (FWO) from the Fair Work Commission (FWC):
| Function |
Fair Work Ombudsman (FWO) |
Fair Work Commission (FWC) |
| Role |
Enforcer of workplace laws |
Workplace relations tribunal |
| Focus |
Compliance, education, investigations |
Dispute resolution, award rulings, wage setting |
| Public Interface |
Provides resources and advice |
Handles applications and hearings |
| Powers |
Audits, penalties, litigation |
Approves agreements, makes legal rulings |
Why the FWO Matters to Employers
For Australian businesses, the FWO is a key authority that can:
- Investigate underpayment of wages
- Audit record-keeping practices
- Check compliance with awards and enterprise agreements
- Issue enforceable undertakings and seek civil penalties for breaches
- Help resolve disputes before they escalate to legal action
If your business is found to be non-compliant, even unintentionally, you may be required to back-pay employees, update records, or even face legal proceedings.
Recent Focus Areas of the Fair Work Ombudsman
The FWO regularly prioritises certain sectors and issues. Recent focus areas include:
- Wage theft in retail and hospitality
- Underpayment of migrant workers
- Non-compliance in franchise networks
- Improved transparency and payslip accuracy
- Wage compliance in universities and professional services
Being aware of the FWO's enforcement priorities can help businesses proactively identify risk areas.
Support and Tools Available from the FWO
The Fair Work Ombudsman provides a wide range of free tools and resources to support compliance:
- Pay and Conditions Tool (PACT): Helps determine the correct pay rates and entitlements.
- Templates and guides: Employment contracts, policies, and onboarding resources.
- Online learning centre: Educational content for both employers and employees.
- Hotline and online enquiry service: For personalised guidance.
Explore the FWO's Pay Calculator
How Microkeeper Helps With FWO Compliance
At Microkeeper, we make it easier for employers to meet their FWO obligations by:
- Automating award interpretation so staff are paid correctly
- Generating compliant payslips that include all required details
- Maintaining accurate digital records for auditing purposes
- Linking timesheets directly to payroll, reducing manual error
- Keeping your payroll system up to date with current wage rates and superannuation requirements
Learn more on how Microkeeper guarantees compliance at info.microkeeper.com.au
FAQs About the Fair Work Ombudsman
Is the Fair Work Ombudsman free to use?
Yes, all services and resources provided by the FWO are free of charge.
Can the FWO prosecute businesses?
Yes. The FWO can commence legal proceedings against businesses that breach workplace laws, especially in cases of serious or deliberate non-compliance.
What happens during a Fair Work audit?
An inspector will review your employee records, payslips, timekeeping systems, and payment history to ensure they align with award and NES standards.
Final Thoughts
The Fair Work Ombudsman is a crucial resource for building compliant and fair Australian workplaces. Whether you're just starting out or managing a growing team, aligning your business with FWO best practices is not only a legal obligation, it’s also key to building trust with your workforce. With Microkeeper, you can simplify and streamline that process from rostering through to payroll.
Disclaimer: This article is for general information only and is not legal advice. For specific advice regarding your employment obligations, please consult the Fair Work Ombudsman or a workplace relations professional.
