Fair Work Ombudsman v Althaus Homes Pty Ltd

The Fair Work Ombudsman brought proceedings in the Federal Circuit and Family Court of Australia against Althaus Homes Pty Ltd and Ronald Alexander Althaus. The dispute concerned Althaus Homes' failure to comply with a compliance notice issued by a Fair Work Inspector, and Mr Althaus's involvement in that failure. The compliance notice had been issued following an investigation into alleged underpayments to an employee.

The court was required to determine whether Althaus Homes Pty Ltd had contravened section 716(5) of the *Fair Work Act 2009* (Cth) by failing to comply with the compliance notice, and whether Ronald Alexander Althaus was involved in that contravention within the meaning of section 550(1) of the Act. The court also had to consider the appropriate pecuniary penalties to be imposed on both respondents for these contraventions.

Judge Jarrett reasoned that section 716(5) of the *Fair Work Act* is a civil remedy provision, and that failure to comply with a compliance notice can attract pecuniary penalties under section 546 of the Act. The court noted that the primary objectives for imposing civil penalties are specific and general deterrence, requiring penalties to have a sufficient "sting or burden". Despite Mr Althaus's assertion that he found the compliance notice confusing, the court found that the notice clearly outlined the potential consequences of non-compliance, including civil penalties and legal action. The court concluded that the respondents' failure to respond to reasonable requests for information and to comply with the notice prevented the expeditious resolution of the underlying underpayment issues and necessitated the institution of proceedings at public expense.

The court declared that Althaus Homes Pty Ltd contravened section 716(5) of the *Fair Work Act* and that Ronald Alexander Althaus was involved in this contravention. Consequently, Althaus Homes Pty Ltd was ordered to pay a pecuniary penalty of $11,340, and Ronald Alexander Althaus was ordered to pay a pecuniary penalty of $2,268. These penalties were ordered to be paid into the Commonwealth Revenue Fund within 28 days.