Fair Work Ombudsman v Bento Kings Meadows Pty Ltd

The Fair Work Ombudsman (FWO) commenced proceedings in the Federal Circuit and Family Court of Australia against Bento Kings Meadows Pty Ltd (the employer) and its sole director, Mr. Anthony John Smith. The dispute concerned allegations that the employer had contravened provisions of the *Fair Work Act 2009* (Cth) by failing to pay two employees their minimum lawful entitlements, including base rates of pay, overtime, and leave entitlements, over a period of approximately 18 months. The FWO also alleged that Mr. Smith was knowingly concerned in the employer's contraventions.

The court was required to determine whether the employer had contravened sections 45 and 50 of the *Fair Work Act 2009* (Cth) by failing to pay the minimum lawful entitlements to its employees. Additionally, the court had to consider whether Mr. Smith was knowingly concerned in, or a party to, the employer's contraventions, pursuant to section 550 of the Act. The FWO sought pecuniary penalties against both the employer and Mr. Smith, as well as orders for the recovery of the outstanding employee entitlements.

Judge O'Sullivan found that the employer had contravened the *Fair Work Act 2009* (Cth) by failing to pay the minimum lawful entitlements to the two employees. The court accepted the FWO's evidence regarding the underpayments, which included evidence of the employees' hours worked and the applicable award rates. The court also found that Mr. Smith was knowingly concerned in, and a party to, the employer's contraventions, noting his active involvement in the management of the business and his awareness of the employees' working conditions and remuneration. The court applied the principles of statutory interpretation to determine the scope of the employer's obligations under the Act and the circumstances under which a director could be held personally liable for corporate contraventions.

The court ordered Bento Kings Meadows Pty Ltd to pay a penalty of $10,200 and Mr. Anthony John Smith to pay a penalty of $2,040. Furthermore, the court ordered the employer to rectify the underpayments to the two employees, totalling $10,998.90, plus superannuation and interest.