Fair Work Ombudsman v AJSJ Pty Ltd

The Fair Work Ombudsman (FWO) commenced proceedings against AJSJ Pty Ltd (the employer) in the Federal Circuit and Family Court of Australia, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned the employer's failure to pay an employee, Ms. J. S. Kim, her minimum entitlements under the National Employment Standards (NES) and the relevant modern award, specifically the *Fast Food Industry Award 2010*. The FWO sought pecuniary penalties for these contraventions.

The primary legal issue before Judge Baumann was whether the employer had contravened section 50 of the Act by failing to pay Ms. Kim the minimum wage and other entitlements, including annual leave and personal/carer's leave, as required by the NES and the *Fast Food Industry Award 2010*. The court was also required to determine whether the employer's conduct constituted a contravention of section 535 of the Act, which relates to record-keeping and pay slip obligations, and if so, to assess the appropriate penalty.

Judge Baumann found that the employer had indeed contravened the Act by failing to pay Ms. Kim her minimum entitlements and by failing to keep accurate records and provide compliant pay slips. The court applied the principles of statutory interpretation to the relevant provisions of the Act and the award, concluding that the employer's obligations were clear and had not been met. The court considered the objective seriousness of the contraventions, the employer's lack of contrition, and the need for deterrence in determining the penalty.

The court ordered AJSJ Pty Ltd to pay a penalty of $10,200 for the contraventions. Additionally, the employer was ordered to rectify the underpayments to Ms. Kim, which amounted to $10,000.