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Employment Law, Compliance & Worker Rights

What is a Fair Work Ombudsman?

Updated 20 Jan 2026 5 min read

The Fair Work Ombudsman (FWO) is Australia's workplace regulator responsible for educating employers and employees about workplace rights and obligations, investigating potential breaches of workplace laws, and taking enforcement action where necessary. The FWO provides free advice, tools, and resources to help workplaces comply with the Fair Work Act.

Role of the Fair Work Ombudsman

The Fair Work Ombudsman is an independent statutory agency that promotes harmonious, productive, and compliant Australian workplaces. It serves both employees seeking to understand their rights and employers wanting to meet their obligations.

Education & advice

  • Free workplace advice
  • Pay and conditions calculators
  • Templates and guides
  • Employer workshops

Compliance & enforcement

  • Workplace investigations
  • Compliance notices
  • Infringement notices
  • Court proceedings

Key functions of the FWO

The Fair Work Ombudsman performs several important functions:

FWO responsibilities

Education: Helping workplaces understand obligations
Advice: Free information via phone and online
Tools: Pay calculators and award finders
Investigation: Assessing potential breaches
Enforcement: Taking action against breaches
Litigation: Court action for serious breaches

FWO resources for employers

The FWO provides extensive free resources to help employers comply with workplace laws:

  • Pay and Conditions Tool (PACT): Calculate correct pay rates for employees
  • Award Finder: Identify which modern award applies to your employees
  • Employment contracts: Free templates for different employment types
  • Record-keeping templates: Time and wages record templates
  • Best Practice Guides: Industry-specific compliance guides
  • Small Business Showcase: Resources tailored to small business needs

FWO enforcement priorities

The FWO prioritises enforcement against businesses that exploit vulnerable workers, including visa holders, young workers, and those in insecure work. Systematic underpayments by large businesses and franchise networks also attract significant enforcement attention and penalties.

Enforcement outcomes

When the FWO investigates and finds breaches, several enforcement outcomes are possible:

Administrative outcomes

  • Education and guidance letters
  • Formal cautions
  • Compliance notices
  • Infringement notices

Legal outcomes

  • Enforceable undertakings
  • Court-ordered penalties
  • Back-payment orders
  • Public naming

Common triggers for FWO investigation

Underpayment complaints

Employee complaints about incorrect wages, missing penalty rates, or unpaid entitlements are a primary trigger for FWO investigations.

Anonymous tip-offs

Tips from current or former employees, competitors, or members of the public about potential breaches lead to many investigations.

Proactive audits

The FWO conducts targeted campaigns in industries with high non-compliance rates, including hospitality, retail, and fast food sectors.

Key takeaways

The Fair Work Ombudsman is both an educational resource and enforcement body. Employers should use FWO tools and resources proactively to support compliance rather than waiting for an investigation.

Good record-keeping is essential—the FWO requires employers to maintain payroll records for 7 years. Use time and attendance software like RosterElf to maintain accurate records and demonstrate compliance if questions arise.

Frequently asked questions

RosterElf Team

Written by

RosterElf Team

The RosterElf team comprises workforce management specialists with deep expertise in Australian employment law, rostering best practices, and payroll compliance. Our team works directly with businesses across hospitality, healthcare, retail, and service industries to develop practical solutions for common workforce challenges.

General information only – not legal advice

This glossary article about fair work ombudsman provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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