Fair Work Ombudsman v Chaipom

The Fair Work Ombudsman (FWO) brought proceedings against Chaipom Pty Ltd (Chaipom) and its sole director, Mr. Jian Li, in the Federal Circuit and Family Court of Australia. The dispute concerned alleged contraventions of the *Fair Work Act 2009* (Cth) (the Act), specifically relating to the underpayment of wages to an employee. The FWO sought declarations of contravention, pecuniary penalties, and orders for the repayment of outstanding wages.

The court was required to determine whether Chaipom had contravened provisions of the Act by failing to pay an employee the minimum wage rates and entitlements stipulated by the relevant award and the National Employment Standards. Furthermore, the court had to consider whether Mr. Li, as the sole director, was knowingly concerned in, or party to, Chaipom's contraventions, thereby rendering him personally liable under section 550 of the Act.

In reaching its decision, the court applied the principles of statutory interpretation to the relevant provisions of the Act and the applicable award. The court found that Chaipom had indeed contravened the Act by failing to pay the employee the correct minimum wages and entitlements. Regarding Mr. Li's personal liability, the court considered the evidence of his involvement in the company's operations and payroll decisions. The court concluded that Mr. Li was knowingly concerned in, and party to, the contraventions, based on his role as the sole director and his active participation in the decision-making processes that led to the underpayments.

The court ordered Chaipom to pay the outstanding wages to the employee and imposed pecuniary penalties on both Chaipom and Mr. Li for the contraventions. Mr. Li was also ordered to pay a portion of the FWO's legal costs.