Fair Work Ombudsman v Hair Industrie Mt Druitt Pty Ltd

The Fair Work Ombudsman (FWO) brought proceedings in the Federal Circuit Court of Australia against Hair Industrie Mt Druitt Pty Ltd (the Company) and its director, Mr. Anthony Michael Smith, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned the Company's failure to pay minimum award entitlements to two employees, a hairdresser and a salon assistant, between 2017 and 2019. The FWO sought penalties against both the Company and Mr. Smith for these alleged breaches.

The primary legal issues before the Court were whether the Company had contravened the Act by failing to pay the employees their minimum hourly rates, overtime, and penalty rates as prescribed by the relevant award, and whether Mr. Smith was personally liable for these contraventions as a "falsely engaged person" or by being knowingly concerned in the contraventions. The Court was required to determine the appropriate penalty for the Company and Mr. Smith, considering the seriousness of the breaches and the need for deterrence.

Judge Manousaridis found that the Company had indeed contravened the Act by underpaying the employees, noting that the Company had paid flat rates that did not account for overtime or penalty rates. The Court also found Mr. Smith personally liable, concluding that he was knowingly concerned in the contraventions. In reaching this decision, the Court applied the principles of statutory interpretation to the relevant provisions of the Act and the applicable award, emphasizing the importance of ensuring employees receive their minimum entitlements. The Court considered the objective of the Act to be the provision of a balanced framework for cooperative and productive workplace relations that promotes national economic prosperity and social inclusion for all Australians.

The Court ordered the Company to pay penalties totalling $10,800 and Mr. Smith to pay penalties totalling $2,160. Additionally, the Company was ordered to rectify the underpayments to the two employees, which amounted to $10,000.