Fair Work Ombudsman v Grouped Property Services Pty Ltd (No 3)

The Fair Work Ombudsman initiated proceedings against Grouped Property Services Pty Ltd in the Federal Circuit Court of Australia, alleging that the company had contravened various provisions of the Fair Work Act 2009 (Cth). The proceedings were part of a broader effort by the Ombudsman to enforce compliance with workplace laws. The primary dispute centred on whether Grouped Property Services Pty Ltd had breached employment standards and the extent to which the company had engaged in unreasonable conduct that warranted a costs order against it.

The legal issues before the court included whether the Fair Work Act authorised the court to make an order for costs against an unsuccessful respondent, and if so, the scope of the court's discretion in determining the amount of those costs. Specifically, the court had to consider whether Grouped Property Services Pty Ltd's conduct was unreasonable under section 570(2)(b) of the Fair Work Act, and whether the costs incurred by the Ombudsman were a direct consequence of such conduct. Additionally, the court needed to address whether the Federal Court Rules 2011 (Cth) permitted the Registrar to determine the amount of costs in a lump sum.

In determining these issues, the court found that the Fair Work Act did indeed provide a basis for awarding costs against an unsuccessful respondent if their conduct was deemed unreasonable. The court held that Grouped Property Services Pty Ltd's conduct was unreasonable, given the company's failure to file timely defences and its obstructive behaviour throughout the proceedings. Consequently, the court ordered that the company pay a significant proportion of the Ombudsman's costs, excluding certain preparatory costs. Furthermore, the court confirmed that the Federal Court Rules 2011 allowed for the costs to be paid in a lump sum, with a referral to the Registrar if the parties could not agree on the amount. The Registrar was directed to determine the costs in a manner deemed appropriate, potentially on the basis of the written submissions alone.

The court made orders that Grouped Property Services Pty Ltd pay 95% of the applicant’s costs of the first hearing and 75% of the costs incurred after 5 December 2016, with these costs to be paid in a lump sum. If the parties could not agree on the amount within 14 days, the matter would be referred to a Registrar to determine the lump sum costs. The Registrar was authorised to determine the amount of the applicant’s costs as deemed fit, including, if appropriate, on the papers.