FEDERAL COURT OF AUSTRALIA
Chelvarajah v Global Protection Pty Ltd [2004] FCA 1661
INDUSTRIAL LAW – employment – termination – order of Australian Industrial Relations Commission requiring appointment of former employee to equivalent position and payment of remuneration lost – employer no longer carrying on business or employing anyone in position of that kind – whether mandatory injunction should be granted to enforce term of order requiring appointment to position – whether penalty should be imposed for breach of term of order requiring appointment to position – whether penalty should be imposed for breach of term of order requiring payment of remuneration lost – whether former employee entitled to sue for money due under term of order requiring payment of remuneration lost
CONTEMPT OF COURT – penalty – fine – discretion to impose – interlocutory mandatory injunction requiring appointment of person to a position – respondent no longer carrying on business or employing anyone in position of that kind – whether fine should be imposed – whether interlocutory injunction should be discharged
WORDS AND PHRASES – ‘employee’ – ‘employer’
Acts Interpretation Act 1901 (Cth) ss 15AA, 33(2A),
Conciliation and Arbitration Act 1904 (Cth) (repealed) s 119
Crimes Act 1914 (Cth)
Evidence Act 1995 (Cth) ss 59(1), 62, 64(2), 87(1)(a), 87(1)(b)
Federal Court of Australia Act 1976 (Cth) ss 51A, 52
Industrial Relations Act 1988 (Cth) s 178(1)
Penalty Interest Rates Act 1983 (Vic)
Service and Execution of Process Act 1992 (Cth) s 9
Statute Law (Miscellaneous Provisions) Act 1987 (Cth)
Workplace Relations Act 1996 (Cth) ss 4(1), 170CE(1)(a), 170CF(1), 170CFA, 170CH, 170CH(4)(b), 170CH(6), 170JC, 170JC(1), 170JC(3), 170JC(3)(a), 170CH(3), 170CH(3)(a), 170CH(3)(b), 170CH(4), 178, 178(1), 178(4)(a)(ii), 178(5)(d), 178(6), 179, 179(1), 179(3), 179A, 356(b), 347, 412(1)(a), 412(1)(b), 412(1)(e)
Workplace Relations Amendment (Codifying Contempt Offences) Act 2004 (Cth) s 3(1)Federal Court Rules O 35 r 8
Ramsey Butchering Services Pty Ltd v Blackadder [2002] FCAFC 20 (2002) 127 FCR distinguished
Attorney-General v Colney Hatch Lunatic Asylum (1868) LR 4 Ch App 146 followed
Anthony Smith and Associates Pty Ltd v Sinclair (1996) 67 IR 240 distinguished
Parkinson v Grazcos Co-Operative Ltd (1958) 1 FLR 90 followed
Municipal Officers Association of Australia v Shire of Wanneroo (Federal Court of Australia, Toohey J, 19 June 1985, unreported) followed
Australasian Meat Industry Employees’ Union v Mudginberri Station Pty Ltd (1986) 161 CLR 98 followed
Witham v Holloway (1995) 183 CLR 525 followed
Re Bramblevale Ltd [1970] Ch 128 followedANTON CHELVARAJAH AND AUSTRALIAN LIQUOR, HOSPITALITY AND MISCELLANEOUS WORKERS’ UNION v GLOBAL PROTECTION PTY LTD (ACN 078 956 519) TRADING AS KIRWAN SECURITY SERVICES
V 857 of 2003GRAY J
21 DECEMBER 2004
MELBOURNE
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY
V 857 of 2003
BETWEEN:
ANTON CHELVARAJAH
FIRST APPLICANTAUSTRALIAN LIQUOR, HOSPITALITY AND MISCELLANEOUS WORKERS' UNION
SECOND APPLICANTAND:
GLOBAL PROTECTION PTY LTD
ACN 078 956 519
Trading as Kirwan Security Services
RESPONDENTJUDGE:
GRAY J
DATE OF ORDER:
21 DECEMBER 2004
WHERE MADE:
MELBOURNE
THE COURT ORDERS THAT:
1.A penalty in…
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- Case
- [2004] FCA 1661
- Decision Date
CaseChat Overview and Summary
The court addressed several legal issues, including the enforceability of the Commission's order, the imposition of penalties for non-compliance, the calculation and payment of lost wages, and the imposition of fines for contempt. The court examined the provisions of the Workplace Relations Act 1996 (WR Act) and considered whether the Commission's order should be treated as an award. It also assessed the respondent's compliance with the order and the implications of the employer's change in business registration. The court noted that Chelvarajah's failure to obtain evidence of the change in business registration before commencing the proceeding led to additional costs.
The court concluded that while Chelvarajah was entitled to payment of arrears pursuant to the third term of the Commission's order, the application for a permanent injunction and penalties for other breaches of the order should be dismissed. The court also dismissed the application for punishment for contempt of court, noting that the case fell within the scope of section 347 of the WR Act. The court ordered Global Protection Pty Ltd to pay a penalty of $2000 and compensate Chelvarajah with $12,836.16, including interest. The interlocutory injunction was discharged, and no order for costs was made.
In summary, the court's decision recognised Chelvarajah's entitlement to lost wages but did not enforce the broader terms of the Commission's order. The court dismissed the applications for penalties, contempt fines, and a permanent injunction, leaving the Commission's order partially enforceable. The court's decision highlighted the importance of obtaining accurate business registration information to avoid unnecessary litigation costs.
Orders
Orders of the court
1. A penalty in the sum of $2000 be imposed on the respondent for breach of a term of
the order made by the Australian Industrial Relations Commission on 13 August 2003.
2. The respondent pay the penalty to the second applicant, the Australian Liquor,
Hospitality and Miscellaneous Workers’ Union.
3. The respondent pay to the first applicant, Anton Chelvarajah, the sum of $12 836.16, including $1699.16 interest to the date of judgment.
4. The application otherwise be dismissed.
5. The motions the subject of the notice of motion filed on 16 December 2003 be
dismissed.
6. The interlocutory injunction in par 2 of the order made by Merkel J on 22 September
2003, and amended on 26 September 2003, be discharged.
7. There be no order as to costs.
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Established by: GRAY J
Regarding the maximum penalty as $10 000, therefore, and taking into account the factors to which I have referred, it seems to me that the appropriate penalty to impose on the respondent for its non-payment of money to Mr Chelvarajah, pursuant to the third term of the Commission’s order, is $2000. Pursuant to s 356(b) of the WR Act, the order should be that the penalty be paid to the second applicant, which has no doubt financed the proceeding for the benefit of Mr Chelvarajah, and which has an interest in securing the observance of the terms of orders of the Commission in respect of its members. See s 178(5)(d) of the WR Act, which gives an organisation, any of whose members are affected by the breach, standing to sue for a penalty.Payment of lost remuneration In respect of his claim for money, pursuant to the third term of the Commission’s order, Mr Chelvarajah relied on two provisions of the WR Act. The first is s 178(6), which provides:‘Where, in a proceeding against an employer under this section, it appears to the court concerned that an employee of the employer has not been paid an amount that the employer was required to pay under an award, order or agreement, the court may order the employer to pay to the employee the amount of the underpayment.’ The second provision was s 179(1), which provides:‘Where an employer is required by an award, order or certified agreement to pay an amount to an employee, the employee may, not later than 6 years after the employer was required to make the payment to the employee under the award, order or agreement, sue for the amount of the payment in the Court or in any court of competent jurisdiction.’ Both of these provisions are found in Pt VIII of the WR Act. They are therefore brought into operation in relation to orders made pursuant to the powers given in Pt VIA by s 170JC(1), on the basis that they have the same effect in relation to orders under Pt VIA as they do in relation to awards. The two provisions, however, have fundamental differences. Section 178(6) confers on the Court a power, using the word ‘may’. Section 178(6) has a legislative lineage similar to that of s 178(1) (as to which see [41] above), so that the power is to be construed as probably discretionary. If so, its exercise would turn upon the discretionary considerations that I have already seen as relevant to the exercise of the powers to grant a permanent injunction and to impose a penalty. In addition, before the Court is empowered by s 178(6) to make an order for payment, it must appear that ‘an employee of the employer has not been paid an amount’. On the face of s 178(6), a question might arise as to whether a subsisting employment relationship is required before the necessary order can be made. Section 179(1) of the WR Act is not a discretionary provision. It provides an entitlement to sue for the amount which the employer is required to pay. Pursuant to s 412(1)(b) of the WR Act, the Court has jurisdiction with respect to matters arising under the WR Act in relation to which actions may be brought in it under the WR Act. There can be no doubt that the Court has jurisdiction to entertain a suit under s 179(1). Nor can there be any doubt that the third term of the Commission’s order of 13 August 2003 creates an obligation to pay. The amount is not fixed by the order, but it can be calculated. The combination of s 179(1) and s 170JC(1) requires that the Commission’s order be treated as if it were an award.