Fair Work Ombudsman v Cobra Security Services Pty Ltd

The Fair Work Ombudsman filed an application against Cobra Security Services Pty Ltd for penalties and other relief in the Federal Circuit and Family Court of Australia, stemming from the company's failure to comply with a compliance notice and alleged underpayment of employees. Cobra Security did not participate in the proceedings and did not provide any evidence or submissions. The dispute was based on the reasonable belief of a Fair Work Inspector, who concluded that the company had breached multiple clauses of the Security Services Industry Award 2020 by underpaying two employees.

The court had to determine whether the Fair Work Inspector's reasonable belief was sufficient to order compensation to the employees for the alleged underpayment, despite the company's non-participation and lack of evidence regarding its financial circumstances. The court also needed to consider the factors relevant to the penalty and the discretion to grant relief under section 545 of the Fair Work Act 2009 (Cth). Additionally, the court had to assess whether the employees' losses were caused by the company's non-compliance with the compliance notice and whether there were alternative enforcement options available.

The court ruled that the Fair Work Inspector's reasonable belief was a proper basis for the compensation order, taking into account the statutory enforcement scheme and the discretion granted to the court. The court also considered factors such as the size of the business, the employer's liability for substantive breaches, and the need for deterrence. The court found that the company's lack of cooperation and intentional non-compliance heightened the need for deterrence and ordered a penalty of two-thirds of the maximum, amounting to $22,200. The court refused the application for compensation and other relief, considering the company's lack of cooperation and the availability of alternative enforcement options.