Western Chinese Language School Incorporated v Fair Work Ombudsman
Citation: [2026] FCAFC 58
At a glance
- Penalty
- $14,145
- Awards cited
- MA000100
What happened
Western Chinese Language School Incorporated (WCLS), a community language school, received a compliance notice in September 2022 from a Fair Work Inspector. The notice alleged WCLS had breached the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award), specifically by underpaying penalty rates for Saturday and public holiday work. WCLS was required to calculate and rectify those underpayments by November 2022. WCLS did not comply. The Fair Work Ombudsman then commenced proceedings in the Federal Circuit and Family Court against WCLS and its then-Chairperson, Baoquan Chen. The primary court found both liable and imposed penalties. WCLS appealed to the Full Federal Court on six grounds, including that the SCHADS Award did not cover community language schools, that the compliance notice was legally deficient, and that the primary judge wrongly refused WCLS leave to amend its defence.
What was decided
The Full Federal Court dismissed all grounds of appeal. The Court upheld the primary judge's findings that WCLS contravened the Fair Work Act by failing to comply with the compliance notice, and that Mr Chen was involved in that contravention. The Court confirmed the SCHADS Award covers community language schools, that the compliance notice was legally valid, and that the obligation to comply with a compliance notice continues even after the deadline specified in the notice has passed. The refusal to allow WCLS to amend its defence at the start of the trial was also upheld. Penalties of $13,320 on WCLS and $825 on Mr Chen, as ordered by the primary court, were left to stand. WCLS was also required to take the steps specified in the original notice, including rectifying underpayments with interest.
What it means for employers
Employers covered by the SCHADS Award, including community language schools, must pay correct penalty rates for Saturday and public holiday work. When a Fair Work Inspector issues a compliance notice, the obligation to comply does not expire just because the deadline has passed. Employers who receive a compliance notice should seek prompt legal advice and act on it. Attempting to raise new defences at the start of a trial, rather than early in proceedings, risks those defences being refused. Involvement of key officeholders in a failure to comply can expose them personally to penalties.
What it means for employees
Employees at community language schools are entitled to the protections of the SCHADS Award, including penalty rates for Saturday and public holiday work. If an employer fails to comply with a Fair Work Inspector's compliance notice, the Fair Work Ombudsman can take the employer to court and seek both penalties and an order requiring back-payment of owed entitlements. This case confirms that the compliance notice system can be an effective tool for recovering unpaid entitlements.
Every statement above is drawn from the published decision. Read the original here:
https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2026/2026fcafc0058Want more cases like this?
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This summary was drafted by AI from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →