Fair Work Ombudsman v Blue Impression Pty Ltd

The Fair Work Ombudsman (FWO) commenced proceedings in the Federal Circuit Court of Australia against Blue Impression Pty Ltd and its sole director, Mr. Jian Li, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned allegations that Blue Impression Pty Ltd failed to pay two employees their minimum entitlements under the *Fast Food, Restaurants and Cafes Award 2010* and the *National Employment Standards* (NES), and that Mr. Li was knowingly concerned in these contraventions. The FWO sought pecuniary penalties against both the company and Mr. Li, as well as orders for the repayment of outstanding wages.

The primary legal issues before the Court were whether Blue Impression Pty Ltd had contravened the Act by failing to pay the minimum wage, overtime, and other entitlements to its employees, and whether Mr. Li, as the sole director, was knowingly concerned in, or a party to, these contraventions. The Court was required to determine the extent of the underpayments and assess whether the conduct of Mr. Li warranted the imposition of personal liability and penalties under section 550 of the Act.

Judge O'Sullivan found that Blue Impression Pty Ltd had indeed contravened the Act by failing to pay the minimum wages and overtime entitlements to its employees, resulting in significant underpayments. Crucially, the Court determined that Mr. Li was knowingly concerned in these contraventions. His Honour found that Mr. Li had a direct involvement in the payroll and employment arrangements, and that he was aware of the company's failure to meet its statutory obligations. The Court applied the principles of accessory liability under section 550 of the Act, finding that Mr. Li's knowledge and active participation established his personal culpability.

Consequently, the Court ordered Blue Impression Pty Ltd to pay a penalty of $10,200 and Mr. Li to pay a penalty of $2,040. The Court also ordered Blue Impression Pty Ltd to rectify the underpayments, totalling $16,998.60, to the affected employees.