Fair Work Ombudsman v Alarcorp Pty Ltd

The Fair Work Ombudsman (FWO) brought proceedings against Alarcorp Pty Ltd (Alarcorp) in the Federal Circuit and Family Court of Australia. The dispute concerned Alarcorp's alleged contravention of the *Fair Work Act 2009* (Cth) by failing to pay an employee, Mr. K. S. Kim, his minimum entitlements, specifically his minimum hourly rate and overtime entitlements, for work performed between 10 March 2018 and 29 September 2018. The FWO sought pecuniary penalties against Alarcorp for these alleged breaches.

The central legal issue before the Court was whether Alarcorp had contravened section 44 of the *Fair Work Act 2009* (Cth) by failing to pay Mr. Kim the minimum hourly rate and overtime entitlements as prescribed by the relevant modern award, the *Clerks – Private Sector Award 2010*. The Court was required to determine if the payments made by Alarcorp to Mr. Kim were sufficient to meet these minimum award entitlements.

Judge Raphael found that Alarcorp had indeed contravened the *Fair Work Act 2009* (Cth). The Court reasoned that the payments made by Alarcorp to Mr. Kim were not sufficient to meet his minimum award entitlements, including his ordinary hourly rate and overtime. The Court applied the principles of award compliance, emphasising that employers have a positive obligation to ensure that employees are paid at least the minimum rates stipulated by applicable modern awards. The Court noted that the onus was on Alarcorp to demonstrate that it had met its obligations.

The Court ordered Alarcorp to pay pecuniary penalties totalling $10,800 for its contraventions. Additionally, Alarcorp was ordered to pay the FWO's costs of the proceedings.