Fair Work Ombudsman v AUSTY Pty Ltd

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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

  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.

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

  1. 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”.

  2. 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.

  3. 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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Details
Case
[2011] FMCA 867
Decision Date

CaseChat Overview and Summary

The Fair Work Ombudsman initiated legal action against AUSTY Pty Ltd and two of its directors, who are referred to as the first and second respondents. The dispute revolves around alleged breaches of the Workplace Relations Act 1996 (Cth), specifically sections 182(1) and 185(2). The Fair Work Ombudsman sought penalties for these breaches, which involve the underpayment of wages and failure to provide pay slips.

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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