Fair Work Ombudsman v Fortcrest Investments Pty Ltd

Case [2010] FMCA 18


FEDERAL MAGISTRATES COURT OF AUSTRALIA

FAIR WORK OMBUDSMAN v FORTCREST INVESTMENTS PTY LTD [2010] FMCA 18
INDUSTRIAL LAW – Takeaway business underpaying an employee – also failing to provide the employee with pay slips and failing to keep adequate records of superannuation contributions – liability admitted – assessment of penalties.
Workplace Relations Act 1996 (Cth), ss.149(e), 178(20, 178(4) 182(1), 513, 208(2), 719(4), 846(2)
Workplace Relations Amendment (Work Choices) Act 2005 (Cth)
Workplace Relations Regulations 2006 (Cth), rr.19.20, 19.13, 14.4, 19.21
Workplace Relations Regulations 1996 (Cth), rr.132A, 131H
Retail Wholesale and Distributive Employees (NT) Award, cl.13, 21

Mason v Harrington Corporation Pty Ltd [2007] FMCA 7
Kelly v Fitzpatrick [2007] FCA 1080
Plancor Pty Ltd v Liquor Hospitality and Miscellaneous Union [2008] FCAFC 170
Ponzio v B & P Caelli Constructions Pty Ltd (2007) 158 FCR 543
Yardley v Betts (1979) 22SASR 108
Rajagopalan v BM Sydney Building Materials Pty Ltd [2007] FMCA 1412
Alfred v Walter Contruction Group Limited [2005] FCA 497
Australian Competition and Consumer Commission v Australian Safeway Stores Pty Limited (1997) 145 ALR 36
McDonald v R (1994) 48 FCR; 120 ALR 629
Mill v R (1988) 166 CLR 59; 83 ALR 1
Australian Ophthalmic Supplies Pty Ltd v McAlary-Smith [2008] FCAFC 8
Fair Work Ombudsman & Bundy Meat Markets [2009] FMCA 994

Fair Work Ombudsman & Land Choice Pty Ltd [2009] FMCA 1255

Applicant: FAIR WORK OMBUDSMAN
Respondent: FORTCREST INVESTMENTS PTY LTD ACN 070 865 824
File Number: DNG 4 of 2009
Judgment of: Terry FM
Hearing date: 4 November 2009
Date of Last Submission: 4 November 2009
Delivered at: Darwin
Delivered on: 18 January 2010

REPRESENTATION

Counsel for the Applicant: Mr Liveris
Solicitors for the Applicant: Clayton Utz
Counsel for the Respondent: Mr O'Loughlin
Solicitors for the Respondent: TS Lee & Associates

ORDERS

IT IS DECLARED THAT:

  1. The Respondent has, by failing between 30 June 2003 and 28 March 2008 to pay Naomi Atkinson (the employee) the minimum wage and the District Allowance to which she was entitled contravened:

    (a)S.149(e) of the Workplace Relations Act 1996 in force prior to the enactment of the Workplace Relations Amendment (Work Choices) Act 2005 (“the pre-reform Act”) and s.182(1) of the Workplace Relations Act 1996 (“WR Act”);

    (b)Clause 13 of the Retail Wholesale and Distributive Employees (NT) Award (“the Award”);

    (c)S.149(e) of the pre-reform Act and s.513 of the Workplace Relations Act; and

    (d)Clause 21 of the Award.

  2. The Respondent has, by failing between 30 June 2003 and 28 March 2008 to provide payslips to the employee, contravened regulation 132A of the Workplace Relations Regulations in force prior to the enactment of the Workplace Relations Amendment (Work Choices) Act2005 (“the pre-reform Regulations”) and Regulation 19.20 of the Workplace Relations Regulations 2006 (“WR Regulations”);

  3. The Respondent has, by failing between 30 June 2003 and 28 March 2008 to keep records of superannuation contributions made on behalf of the employee in accordance with the requirements of the regulations, contravened regulation 131H of the pre-reform Regulations and…

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Details
AGLC
Fair Work Ombudsman v Fortcrest Investments Pty Ltd [2010] FMCA 18
Case
[2010] FMCA 18
Decision Date

CaseChat Overview and Summary

The Fair Work Ombudsman brought an action against Fortcrest Investments Pty Ltd, asserting that the company had failed to comply with various labour laws between 30 June 2003 and 28 March 2008. The dispute involved allegations that Fortcrest Investments Pty Ltd had contravened provisions of the Workplace Relations Act and associated regulations by not paying Naomi Atkinson, an employee, the minimum wage and the District Allowance, not providing her with payslips, and not maintaining records of superannuation contributions as required by the regulations. The case was heard and determined by the Federal Court of Australia.

The primary legal issues the court had to resolve were whether the respondent had indeed failed to adhere to the specified labour laws and regulations, and if so, whether the penalties imposed were appropriate. The court examined the specific provisions of the Workplace Relations Act and Regulations to ascertain if the respondent had contravened these laws by not paying the required wages and allowances, by not providing payslips, and by not maintaining proper records of superannuation contributions.

The court found that Fortcrest Investments Pty Ltd had indeed contravened the relevant laws and regulations by not paying the employee the minimum wage, the District Allowance, and by failing to provide payslips and maintain proper records of superannuation contributions. The court accepted the evidence and arguments presented by the Fair Work Ombudsman, concluding that the respondent had breached the statutory obligations. Consequently, the court declared the contraventions and ordered the respondent to pay penalties for each identified breach. The penalties were calculated based on the nature and duration of the contraventions.

The court ordered that Fortcrest Investments Pty Ltd pay penalties totaling $22,200 to the Commonwealth Consolidated Revenue Fund by a specified date. This included penalties for failure to pay minimum wages and allowances, failure to provide payslips, and failure to maintain records of superannuation contributions. This decision underscored the importance of compliance with labour laws and the consequences of non-compliance.

Orders

Orders of the court

IT IS DECLARED THAT:

1.

The Respondent has, by failing between 30 June 2003 and 28 March 2008 to pay Naomi Atkinson (the employee) the minimum wage and the District Allowance to which she was entitled contravened:

(a) S.149(e) of the Workplace Relations Act 1996 in force prior to the enactment of the Workplace Relations Amendment (Work Choices) Act 2005 (“the pre-reform Act”) and s.182(1) of the Workplace Relations Act 1996 (“WR Act”);

(b) Clause 13 of the Retail Wholesale and Distributive Employees (NT) Award (“the Award”);

(c) S.149(e) of the pre-reform Act and s.513 of the Workplace Relations Act; and

(d) Clause 21 of the Award.

2.

The Respondent has, by failing between 30 June 2003 and 28 March 2008 to provide payslips to the employee, contravened regulation 132A of the Workplace Relations Regulations in force prior to the enactment of the Workplace Relations Amendment (Work Choices) Act 2005 (“the pre-reform Regulations”) and Regulation 19.20 of the Workplace Relations Regulations 2006 (“WR Regulations”);

3.

The Respondent has, by failing between 30 June 2003 and 28 March 2008 to keep records of superannuation contributions made on behalf of the employee in accordance with the requirements of the regulations, contravened regulation 131H of the pre-reform Regulations and Regulation 19.13 of the WR Regulations.

IT IS ORDERED THAT:

4.

The Respondent pay a penalty of:

(a)

$10,000.00 in respect of the contravention of s.149(e) and

s.182(1) of the legislation (failure to pay a minimum wage or basic period rate of pay);

(b) $10,000.00 in respect of the contravention of s.149(e) and s.513 of the legislation (failure to pay a District Allowance);

(c) $1,100.00 in respect of its contravention of rr.132A and 19.20 of the regulations (failure to provide pay slips); and

(d) $1,100.00 in respect of its contravention of rr.131H and 19.13 of the regulations (failure to keep records of superannuation paid on behalf of the employee as prescribed by the legislation).

5.

The penalties referred to in (4) above be paid to the Commonwealth Consolidated Revenue Fund by 4.00pm on 18 April 2010.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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