FEDERAL MAGISTRATES COURT OF AUSTRALIA
| FAIR WORK OMBUDSMAN v AUSTY PTY LTD & ANOR | [2011] FMCA 867 |
| INDUSTRIAL LAW – Penalty hearing for contraventions of ss.182(1) and 185(2) of the Workplace Relations Act 1996 (Cth) – failure to adhere to minimum wage standards – failure to pay casual loading – involvement of company manager in contravention – where agreed statement of facts – where breaches admitted – imposition of penalty – factors relevant to calculation of penalty. |
| Minimum Conditions of Employment Act 1993 (WA) Workplace Relations Act 1996 (Cth), ss.182(1), 185(2), 719(2) |
| AWU v QCC [2005] QIRComm 123; 179 QGIG 882 (15 August 2005) Alfred v the CFMEU [2011] FCA 556 Ponzio v B & P Caelli Constructions Pty Ltd (2007) 158 FCR 543; [2007] FCAFC 65 |
| Applicant: | FAIR WORK OMBUDSMAN |
| First Respondent: | AUSTY PTY LTD |
| Second Respondent: | KIYOMI MARUOKA |
| File Number: | PEG 169 of 2011 |
| Judgment of: | Raphael FM |
| Hearing date: | 8 November 2011 |
| Date of Last Submission: | 8 November 2011 |
| Delivered at: | Perth |
| Delivered on: | 8 November 2011 |
REPRESENTATION
| Counsel for the Applicant: | Mr G Spain |
| Solicitors for the Applicant: | Fair Work Ombudsman |
| Counsel for the Respondents: | Ms R Airey |
| Solicitors for the Respondents: | McDonald Balanda & Associates |
ORDERS
The appropriate penalty payable by the First Respondent for breach of:
(a)s.182(1) of the Workplace Relations Act 1996 (Cth) is $13,000; and
(b)s.185(2) of the Workplace Relations Act 1996 (Cth) is $10,000,
payable within 2 months.
The appropriate penalty payable by the Second Respondent for breach of s.182(1) of the Workplace Relations Act 1996 (Cth) is $2,500, payable within 3 months.
Both penalties are payable to the Commonwealth.
| FEDERAL MAGISTRATES COURT OF AUSTRALIA AT PERTH |
PEG 169 of 2011
| FAIR WORK OMBUDSMAN |
Applicant
And
| AUSTY PTY LTD |
First Respondent
| KIYOMI MARUOKA |
Second Respondent
REASONS FOR JUDGMENT
There comes before me today an application by the Fair Work Ombudsman for penalties against the First and Second Respondent for breaches of the former Workplace Relations Act 1996 (Cth)[1], arising out of the underpayment of certain employees in both Western Australia and Queensland. Although the First Respondent is an Australian company, it is wholly owned by Japanese interests, and the Second Respondent is a Japanese national. The business operated by the First Respondent through the Second Respondent, its manager, is that of providing wedding planning facilities to Japanese nationals who wish to be married in Australia.
[1] “WR Act”.
The original application to this Court was made on 24 June in this year, and was supported by a Statement of Claim. Since the commencement of the proceedings, the parties have agreed on a Statement of Facts which was filed in this Registry on 4 November 2011. The First Respondent admits breaches of sections 182(1) and 185(2) of the WR Act. The Second Respondent admits that she was a person involved in the contraventions.
The Agreed Statement of Facts notes that from 27 March 2006, the First Respondent was bound to pay its:
a)Western Australian employees in accordance with…
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- Case
- [2011] FMCA 867
- Decision Date
CaseChat Overview and Summary
The central legal issues before the court were the identification of the appropriate penalties for the breaches and the determination of who was liable for the penalties. The court had to assess the severity of the breaches and consider relevant factors, including the company's history of non-compliance and the directors' involvement in the breaches. Additionally, the court needed to decide whether the breaches were intentional or due to negligence.
In determining the penalties, the court meticulously examined the evidence presented and considered various factors such as the gravity of the breaches, the culpability of the respondents, and the need for deterrence. The court found that the first respondent's breaches were more severe due to the larger scale of underpayment and deliberate nature. Consequently, the court imposed a penalty of $13,000 for section 182(1) and $10,000 for section 185(2). The second respondent's penalty was set at $2,500 due to their lesser involvement. Both penalties were ordered to be paid to the Commonwealth within specified timeframes.
Orders
Orders of the court
1.
The appropriate penalty payable by the First Respondent for breach of:
(a) s.182(1) of the Workplace Relations Act 1996 (Cth) is $13,000; and
(b) s.185(2) of the Workplace Relations Act 1996 (Cth) is $10,000,
payable within 2 months.
2.
The appropriate penalty payable by the Second Respondent for breach of s.182(1) of the Workplace Relations Act 1996 (Cth) is $2,500, payable within 3 months.
3.
Both penalties are payable to the Commonwealth.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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