Euro Car Parts Pty Ltd v Cannon

Euro Car Parts Pty Ltd brought an appeal against Mr Cannon in the Industrial Magistrates Court of Western Australia, contending that Mr Cannon was underpaid during his employment and that the Court lacked jurisdiction to hear the matter. Mr Cannon argued that there was an oral agreement that he would receive a salary of $68,000 once he completed a three-month probation period. The Industrial Magistrate ruled in Mr Cannon's favour, entering a default judgment and ordering Euro Car Parts Pty Ltd to pay Mr Cannon $51,718.36. Euro Car Parts Pty Ltd then appealed to the Federal Court, arguing that the Industrial Magistrates Court did not have the jurisdiction to make such orders and that there was no serious question to be tried regarding the oral agreement.

The Federal Court first considered whether the Industrial Magistrates Court had the jurisdiction to make the orders in question under section 545(3) of the Fair Work Act 2009 (FW Act). The Court found that the Industrial Magistrates Court did have the jurisdiction to make orders in relation to contraventions of section 323 of the FW Act. The Court also considered whether there was a serious question to be tried regarding the alleged oral agreement about Mr Cannon's salary. The Court found that there was a serious question to be tried in relation to the oral agreement, but that the Industrial Magistrate had erred in finding otherwise.

Consequently, the appeal was allowed in part. The orders of the Industrial Magistrates Court of Western Australia made on 17 August 2022 and 24 November 2022 were set aside. The matter was remitted to the Industrial Magistrates Court of Western Australia to be heard and determined according to law, and consistently with these reasons for judgment. The appeal was dismissed in all other respects.