Fair Work Ombudsman v Eagle trading as Eagletech Engineering

Case [2024] FedCFamC2G 1123


FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA

(DIVISION 2)

Fair Work Ombudsman v Eagle trading as Eagletech Engineering [2024] FedCFamC2G 1123

File number(s): SYG 1542 of 2024
Judgment of: JUDGE LAING
Date of judgment: 5 November 2024 
Catchwords: INDUSTRIAL LAW – assessment of a pecuniary penalty for contravention of s 716(5) of the Fair Work Act 2009 (Cth) – liability conceded – dispute regarding appropriate penalty to be imposed – penalty determined
Legislation:

Fair Work Act 2009 (Cth) ss 90, 539, 546 & 716

Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 (Cth)

Cases cited:

Australian Building and Construction Commissioner v Pattinson [2022] HCA 13; (2022) 399 ALR 599

Construction, Forestry, Maritime, Mining and Energy Union v Australian Building and Construction Commissioner (The Non-Indemnification Personal Payment Case) [2018] FCAFC 97; (2018) 264 FCR 155

Fair Work Ombudsman v Althaus Homes Pty Ltd [2021] FCCA 126

Fair Work Ombudsman v Extrados Solutions Pty Ltd [2014] FCCA 815

Fair Work Ombudsman v Haider Pty Ltd & Anor [2015] FCCA 2113

Fair Work Ombudsman v Jaycee Trading Pty Ltd & Anor (No.2) [2013] FCCA 2128

Fair Work Ombudsman v Matcraft Pty Ltd [2021] FCCA 272

Fair Work Ombudsman v Nobrace Centre Pty Ltd & Anor (No.2) [2019] FCCA 2144

Fair Work Ombudsman v NSH North Pty Ltd trading as New Shanghai Charlestown [2017] FCA 1301; (2017) 275 IR 148

Fair Work Ombudsman v Sun Sea Equity Pty Ltd [2021] FCCA 104

Fair Work Ombudsman v Tester [2021] FCCA 771

Fair Work Ombudsman v Yogurberry World Square Pty Ltd [2016] FCA 1290; (2016) 68 AILR 102–690

Mason v Harrington Corporation Pty Ltd t/as Pangaea Restaurant & Bar [2007] FMCA 7

Mornington Inn Pty Ltd v Jordan [2008] FCAFC 70; (2008) 168 FCR 383

Ponzio v B & P Caelli Constructions Pty Ltd (2007) 158 FCR 543

Trade Practices Commission v CSR Ltd [1990] FCA 762; [1991] ATPR 41-076

Division: Fair Work
Number of paragraphs: 53
Date of last submission/s: 21 October 2024
Date of hearing: Determined on the papers
Place: Sydney
Solicitor for the Applicant: Norton Rose Fulbright Australia
Counsel for the Respondent: Mr A Guy
Solicitor for the Respondent: Keypoint Law

ORDERS

SYG 1542 of 2024

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)

BETWEEN:

FAIR WORK OMBUDSMAN

Applicant

AND:

CHRISTOPHER JUSTIN EAGLE TRADING AS EAGLETECH ENGINEERING

Respondent

ORDER MADE BY:

JUDGE LAING

DATE OF ORDER:

5 NOVEMBER 2024

THE COURT DECLARES THAT:

1.The Respondent contravened s 716(5) of the Fair Work Act 2009 (Cth) (FW Act) by failing to comply with the compliance notice given to the Respondent on 31 August 2023 (Compliance Notice).

THE COURT ORDERS THAT:

2.Pursuant to s 546(1) of the FW Act, the Respondent pay a pecuniary penalty of $3,756 to the Commonwealth, for the contravention of s 716(5) of the FW Act by failing to comply with the Compliance Notice, within 28 days of this order.

3.The Applicant has liberty to apply in the…

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AGLC
Fair Work Ombudsman v Eagle trading as Eagletech Engineering [2024] FedCFamC2G 1123
Case
[2024] FedCFamC2G 1123
Decision Date

CaseChat Overview and Summary

In the Fair Work Ombudsman versus Eagle trading as Eagletech Engineering, the Fair Work Ombudsman sought to enforce a pecuniary penalty against Mr Eagle for contraventions of section 716(5) of the Fair Work Act 2009. Mr Eagle conceded liability for the contraventions but contested the amount of the penalty proposed by the Fair Work Ombudsman. The case was heard by the Federal Circuit and Family Court of Australia.

The central issue before the Court was the determination of an appropriate penalty for Mr Eagle's contraventions. The Court was tasked with considering the seriousness of the breaches, Mr Eagle's history of compliance, and the deterrent effect required to uphold the integrity of the Fair Work Act. The Fair Work Ombudsman argued for a penalty reflecting the gravity of the breaches, while Mr Eagle contended for a lower penalty, citing his otherwise good compliance record and the absence of significant financial benefit from the contraventions.

The Court considered the principles outlined in section 716(6) of the Fair Work Act, which include the need to deter contraventions and promote compliance. The Court noted that while Mr Eagle had a history of compliance, the contraventions in question were serious, involving multiple instances of underpaying workers. The Court also took into account the absence of significant financial gain to Mr Eagle from the breaches, which influenced the penalty downwards. After weighing these factors, the Court determined that a penalty of $3,756 was appropriate.

In conclusion, the Court found that Mr Eagle was liable for the contraventions and ordered him to pay a pecuniary penalty of $3,756. The Court also granted the Fair Work Ombudsman's request for associated orders. The decision underscores the importance of compliance with the Fair Work Act and the Court's role in ensuring that penalties are proportionate and serve as a deterrent against future breaches.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

Should Mr Eagle find himself before the Court again for non-compliance with his obligations, a different view of the appropriate penalty may well be taken.CONCLUSION For the foregoing reasons, I will make orders requiring that Mr Eagle pay a pecuniary penalty in the amount of $3,756, as well as associated orders that have been sought by the FWO.

Ratio Decidendi

Legal Principle Established

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