Fair Work Ombudsman v Grandcity (GW) Travel and Tour Pty Ltd

The Fair Work Ombudsman (FWO) commenced proceedings in the Federal Circuit Court of Australia against Grandcity (GW) Travel and Tour Pty Ltd (the Company) and its director, Mr. Jian Li, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned the Company's failure to pay two employees their minimum entitlements, including minimum wages, overtime, and leave entitlements, over a period of approximately two years. The FWO sought pecuniary penalties against both the Company and Mr. Li, as well as orders for the repayment of the outstanding entitlements.

The primary legal issues before the Court were whether the Company had contravened specific provisions of the Act by failing to pay the minimum wage and other entitlements to its employees, and whether Mr. Li was personally liable for these contraventions as a person involved in the Company's contravening conduct. The Court was required to determine the extent of the underpayments and assess the appropriate penalty for the contraventions, considering the objective seriousness of the conduct and any mitigating or aggravating factors.

Judge O'Sullivan found that the Company had contravened the Act by failing to pay the minimum wage and other entitlements to its employees. The Court determined that Mr. Li was knowingly concerned in, and a party to, the Company's contraventions, rendering him personally liable under section 550 of the Act. In reaching this conclusion, the Court considered the evidence presented, including employment records and witness testimony, which established a pattern of underpayment. The Court applied the principles of statutory interpretation to the relevant provisions of the Act and relevant awards, emphasizing the importance of employers meeting their minimum obligations to employees. The Court noted the deliberate nature of the underpayments and the lack of any genuine dispute about the entitlements owed.

The Court ordered the Company to pay the outstanding entitlements to the employees, totalling $36,998.90. Pecuniary penalties were also imposed: $15,000 against the Company and $3,000 against Mr. Li.