The case involves “accessorial liability for workplace breaches, with human resources managers and advisers also flagged as potential targets,” the story notes. The two workers were still being underpaid even after the Fair Work Ombudsman’s office warned the firm and management to rectify the situation in 2012, said the agency’s head, Natalie James.

"While not being primarily responsible for operating the business, this manager was fully aware employees were being deliberately underpaid and helped to facilitate the exploitation of two vulnerable workers," she said. "Managerial staff need to be aware that knowingly facilitating the underpayment of employees' minimum entitlements is serious, unlawful conduct and will not be tolerated.”

Peter Wilson, chief executive of the Australian Human Resources Institute, said the ombudsman office would go “well down the food chain” and target most junior managers. "I think it's harsh," he said. "The legislation is very complex and detailed and small to medium businesses don't have the expertise. Low-level payroll officers are not well protected.”

HR managers also may need to look into securing insurance to protect directors and officers against suits, Wilson said.

Read the full article from the Australian Financial Review.