Fair Work Ombudsman v ACC Services (Aust) Pty Ltd T/As Rapid Pak

The Fair Work Ombudsman (FWO) brought proceedings against ACC Services (Aust) Pty Ltd, trading as Rapid Pak, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned alleged underpayments of wages and entitlements to employees of Rapid Pak, specifically relating to the classification of employees and the correct application of the relevant modern award. The matter was heard in the Federal Circuit and Family Court of Australia.

The primary legal issues before the Court were whether Rapid Pak had contravened provisions of the Act by failing to pay its employees the minimum wages and entitlements prescribed by the *Manufacturing and Associated Industries and Occupations Award 2010* (the Award). This involved determining the correct classification of the employees under the Award, which in turn dictated the applicable minimum wage rates and other entitlements, such as overtime and penalty rates. The FWO also alleged that Rapid Pak had failed to keep accurate and complete employee records and provide payslips in the form required by the Act.

Judge Riethmuller found that Rapid Pak had indeed contravened the Act by underpaying its employees. The Court determined that the employees had been incorrectly classified under the Award, leading to the payment of wages below the minimum rates. The reasoning focused on the specific duties and responsibilities undertaken by the employees, which aligned with higher classifications within the Award than those assigned by Rapid Pak. The Court applied the principles of statutory interpretation to the Award and the Act, emphasising the employer's obligation to correctly classify employees and pay them in accordance with the minimum standards. The Court also found contraventions relating to record-keeping and payslip obligations.

The Court ordered Rapid Pak to pay pecuniary penalties for the contraventions found. Additionally, Rapid Pak was ordered to rectify the underpayments to the affected employees, including the payment of outstanding wages and entitlements, with interest.