Construction, Forestry, Maritime, Mining and Energy Union v Melbourne Precast Concrete Nominees Pty Ltd (No 3)

In the Federal Court, the Construction, Forestry, Maritime, Mining and Energy Union and two employees brought an application against Melbourne Precast Concrete Nominees Pty Ltd and two of its directors. The applicants sought compensation for non-economic loss, pecuniary penalties, and declarations that the respondents contravened specific provisions of the Fair Work Act 2009 (Cth). Earlier proceedings had already determined that the respondents had contravened the Act by dismissing the employees without just cause or reason and had ordered reinstatement and compensation for economic loss. The court was required to determine whether the respondents should also pay compensation for non-economic loss and pecuniary penalties, and if so, what the appropriate quantum of compensation and penalties should be. The court also needed to decide if the rule against civil double jeopardy in section 556 of the Fair Work Act applied to the penalty provisions.

The court found that the second applicant was entitled to compensation for non-economic loss in the amount of $10,000. The court assessed the seriousness of the contraventions and determined that the first respondent should pay a pecuniary penalty of $50,000 for its contravention of section 340(1) of the Fair Work Act, while the second respondent should pay a penalty of $10,000 for its contravention of the same section. The court considered the need for general and specific deterrence, as well as the principles of proportionality and parity. The court also held that section 556 of the Fair Work Act did not apply to the penalty provisions, allowing for the imposition of multiple penalties. The court made orders for the respondents to pay the specified amounts within 28 days.