FEDERAL COURT OF AUSTRALIA
Fair Work Ombudsman v Hu (No 3) [2020] FCA 936
File number: QUD 708 of 2016 Judge: RANGIAH J Date of judgment: 29 June 2020 Catchwords: INDUSTRIAL LAW - pecuniary penalties – admitted contraventions of ss 45 and 546 of the Fair Work Act 2009 (Cth) – where parties agreed penalties – penalties imposed Legislation: Fair Work Act2009 (Cth) ss 45, 536 and 546
Fair Work Regulations 2009 (Cth) reg 3.46
Cases cited: Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union (2017) 249 FCR 458
Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate (2015) 258 CLR 482
Construction, Forestry, Mining and Energy Union v Coal & Allied Operations (No 2) (1999) 94 IR 231
Fair Work Ombudsman v Hu [2019] FCAFC 133
Fair Work Ombudsman v Hu [2020] HCATrans 011
Fair Work Ombudsman v Hu (No. 2) [2018] FCA 1034
Kelly v Fitzpatrick (2007) 166 IR 14
Mornington Inn Pty Ltd v Jordan (2008) 168 FCR 383
Stuart-Mahoney v Construction, Forestry, Mining and Energy Union (2008) 177 IR 61Date of hearing: 29 June 2020 Registry: Queensland Division: Fair Work Division National Practice Area: Employment & Industrial Relations Category: Catchwords Number of paragraphs: 18 Counsel for the Applicant: Mr J Bourke QC Solicitor for the Applicant: Fair Work Ombudsman Counsel for the Respondent: Mr D Grippi Solicitor for the Respondent: Johnsons Law Group ORDERS
QUD 708 of 2016 BETWEEN: FAIR WORK OMBUDSMAN
Applicant
AND: TAO HU
Respondent
JUDGE:
RANGIAH J
DATE OF ORDER:
29 JUNE 2020
THE COURT DECLARES THAT:
1.The first respondent was involved in, within the meaning of s 550(2) of the Fair Work Act 2009 (Cth) (FW Act), the contravention by HRS Country Pty Ltd (HRS Country) of each of the following civil penalty provisions:
(a)s 45 of the FW Act by HRS Country failing to pay each of its employees who were 20 years of age or older and have an applicable entry in Column A of Schedule A to these orders (save for the employee at line 80 of Schedule A), the minimum hourly rate for ordinary hours worked pursuant to cl 14.1 of the Horticulture Award 2010 (the Horticulture Award);
(b)s 45 of the FW Act by HRS Country failing to pay the employee who was under 20 years of age and has an applicable entry in Column A of Schedule A to these orders, namely, the employee at line 80, the minimum hourly rate for hours worked pursuant to cl 16.1 of the Horticulture Award and cll A.2 and A.3 of Schedule A of the Horticulture Award;
(c)s 45 of the FW Act by HRS Country failing to pay each of its employees who have an applicable entry in Column B of Schedule A to these orders, a casual loading pursuant to cl 10.4(b) of the Horticulture Award and cl A.5 of Schedule A of the Horticulture Award;
(d)s 45 of the FW Act by HRS…
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- Case
- [2020] FCA 936
- Decision Date
CaseChat Overview and Summary
The Federal Circuit and Family Court of Australia, exercising its jurisdiction under section 659D of the Fair Work Act, found that the agreed penalties were appropriate. The court took into account several factors, including the seriousness of the contraventions, the degree of intentionality, and the financial benefit obtained by HRS Country from the contraventions. The court also considered the impact of the contraventions on the employees and the need for deterrence. The court found that the penalties, which were proportionate to the contraventions and the financial benefit obtained by HRS Country, served the purposes of punishment, deterrence, and compensation. The penalties were thus imposed on Ms Hu, to be distributed to the affected employees in amounts proportionate to their outstanding underpayments. In the event that any of the employees could not be located, the balance of the penalties was to be paid into the Consolidated Revenue Fund of the Commonwealth.
The court issued several orders, including that Ms Hu pay the penalties within 28 days, that the penalties be distributed to the employees within 180 days, and that the Fair Work Ombudsman have liberty to apply for enforcement if the orders were not complied with. The court made no order as to costs.
Orders
Orders of the court
2. The first respondent pay the following penalties, pursuant to s 546(2) of the FW Act, in respect of her involvement in each of the contraventions declared in Declaration 1 above, to the applicant within 28 days of this order:
Declaration
Summary of Contravention
Penalty
1(a)
Failure to pay adult minimum hourly rate
$6,528.00
1(c)
Failure to pay casual loading
$6,528.00
1(d)
Failure to pay public holiday rates
$4,080.00
1(e)
Failure to provide paid rest breaks
$4,080.00
1(f)
Failure to include prescribed information in payslips
$1,224.00
Total:
$22,440.00
3. The penalties paid in accordance with Order 2 above, be thereafter distributed by the applicant to the HRS Country employees listed in Schedule A to this order, within 180 days of this order, in amounts proportionate to their outstanding underpayments as set in Column F of Schedule A to these orders.
4. In the event that any of the HRS Country employees listed in Schedule A to these orders cannot be located within 180 days of this order, the balance of the amounts received in accordance with Order 2 be paid into the Consolidated Revenue Fund of the Commonwealth.
5. The applicant have liberty to apply on 7 days’ notice in the event that any of the preceding orders are not complied with.
6. There be no order as to costs.
SCHEDULE A
A
B
C
D
E
F
Line
Employee
Hourly
Rate
Casual
Loading
Public
Holiday
Rate
Paid Rest Break
Total Underpayment Amounts
Proportion of
Underpayment
Adult Employees
1.
Amanda SMITH
N/A
-$18.07
N/A
-$10.41
-$28.48
0.04%
2.
Amelie CLARIGO
N/A
-$112.70
N/A
-$17.35
-$130.05
0.17%
3.
Anthony LOYSON
-$0.66
-$949.84
-$226.60
-$87.74
-$1,264.84
1.61%
4.
ARMITAGE Sue
-$2.07
-$788.43
-$282.42
-$89.97
-$1,162.89
1.48%
5.
Benjamin GONTRAN- MASSEY
-$4.61
-$2,743.00
-$457.36
-$248.35
-$3,453.32
4.39%
6.
Beverley MARAE
N/A
-$51.18
N/A
-$6.94
-$58.12
0.07%
7.
Binqi HUANG
N/A
-$41.59
N/A
N/A
-$41.59
0.05%
8.
CHAN Wing Yan (Kacie)
-$756.80
-$371.82
-$267.28
-$83.03
-$1,478.93
1.88%
9.
CHANG Lei
N/A
-$70.04
N/A
N/A
-$70.04
0.09%
10.
CHEN Jia Sing
-$0.34
-$1,134.17
-$215.01
-$108.56
-$1,458.08
1.85%
11.
CHEN Kun-Yu (David)
-$0.35
-$1,592.96
-$288.46
-$146.73
-$2,028.50
2.58%
12.
Che-Yu HE (Aaron)
-$583.62
-$4,209.78
-$476.67
-$362.86
-$5,632.93
7.16%
13.
Chi Sang CHUI
N/A
-$516.16
N/A
-$48.58
-$564.74
0.72%
14.
Chia Li CHEN
N/A
-$93.25
N/A
N/A
-$93.25
0.12%
15.
Chia-Jung HSIEH (Jay)
-$9.84
-$209.74
N/A
-$34.70
-$254.28
0.32%
16.
CHING Lai
-$0.01
-$109.57
N/A
-$10.41
-$119.99
0.15%
17.
Ching-Chuan KUO (Peggy)
-$702.43
-$2,252.83
-$297.34
-$209.19
-$3,461.79
4.40%
18.
CHOU Hsin Fu (Frank)
-$78.91
-$38.85
N/A
-$3.47
-$121.23
0.15%
19.
Chu-Kang WU (Justin)
N/A
-$72.31
-$92.83
-$9.17
-$174.31
0.22%
20.
CLARK Kelly
N/A
-$3.92
N/A
-$12.20
-$16.12
0.02%
21.
CROSS Daniel
-$0.66
-$1,246.71
-$488.99
-$119.96
-$1,856.32
2.36%
22.
DAHMANI Sabrina
-$3.36
-$1,111.82
-$190.13
-$118.97
-$1,424.28
1.81%
23.
Devon Hetzger
-$48.47
-$835.63
N/A
-$69.40
-$953.50
1.21%
24.
Elham Ghanei
-$49.25
-$2,135.95
-$540.12
-$203.24
-$2,928.56
3.72%
A
B
C
D
E
F
Line
Employee
Hourly
Rate
Casual
Loading
Public
Holiday
Rate
Paid Rest Break
Total Underpayment Amounts
Proportion of
Underpayment
25.
ESLAMI Reza
-$208.11
-$1,973.87
-$484.08
-$185.89
-$2,851.95
3.63%
26.
Foloi Siu
-$6.39
-$422.89
-$228.94
-$46.10
-$704.32
0.90%
27.
FONG Tung Ham (Ham)
N/A
-$108.73
N/A
-$10.41
-$119.14
0.15%
28.
HASHIMOTO Risa
N/A
-$75.80
N/A
-$10.41
-$86.21
0.11%
29.
HOBBS Trent
-$1.50
-$15.50
NTA
-$5.04
-$22.04
0.03%
30.
Hon Shing YIP
N/A
-$565.04
N/A
-$55.52
-$620.56
0.79%
31.
HSU Feng-Chih (Vincent)
-$0.16
-$927.56
-$51.68
-$78.57
-$1,057.97
1.34%
32.
HUANG Chia-Chi (Jessie)
-$328.06
-$2,466.36
-$447.17
-$206.71
-$3,448.30
4.38%
33.
HUANG Sai Ping
N/A
-$105.38
N/A
-$10.41
-$115.79
0.15%
34.
HUNG Ya Chuan (Sophia)
N/A
-$34.69
N/A
-$6.94
-$41.63
0.05%
35.
I Chu LIU
N/A
-$94.10
N/A
N/A
-$94.10
0.12%
36.
Jamie COOK
N/A
-$5.11
N/A
N/A
-$5.11
0.01%
37.
John LEADBETTER
N/A
-$4.08
N/A
-$3.47
-$7.55
0.01%
38.
Ka Kit TSOI
N/A
-$568.31
N/A
-$55.52
-$623.83
0.79%
39.
Kellie MCRAE
N/A
-$51.22
N/A
-$6.94
-$58.16
0.07%
40.
Keng Han Chieh
-$0.86
-$1,319.17
-$104.36
-$106.33
-$1,530.72
1.95%
41.
KWAN Man Chun
-$0.19
-$2,794.29
-$303.12
-$266.94
-$3,364.54
4.28%
42.
Kylie Johnston (JOHNSTONE)
N/A
-$61.69
N/A
-$10.41
-$72.10
0.09%
43.
LAI Ya Juan (Becky)
-$111.84
-$1,438.48
-$348.69
-$148.65
-$2,047.66
2.60%
44.
LEE Tak Wai (David)
N/A
-$23.17
N/A
N/A
-$23.17
0.03%
45.
LI Fang Zhan
N/A
-$107.56
N/A
-$10.41
-$117.97
0.15%
46.
LIU Pei Fang
-$0.82
-$2,092.64
-$316.76
-$204.48
-$2,614.70
3.32%
47.
Mei-Chen LU (Cindy)
-$35.04
-$749.69
-$158.90
-$71.63
-$1,015.26
1.29%
48.
MIRETTI Maeva
N/A
-$69.12
N/A
-$6.94
-$76.06
0.10%
49.
MONDEN Miho
N/A
-$515.28
-$161.50
-$105.09
-$781.87
0.99%
50.
MORRIS Gregory
-$0.17
-$203.93
N/A
-$20.82
-$224.92
0.29%
51.
Ng Tung Cheong (Charles)
-$19.64
-$1,647.46
-$74.57
-$175.73
-$1,917.40
2.44%
A
B
C
D
E
F
Line
Employee
Hourly
Rate
Casual
Loading
Public
Holiday
Rate
Paid Rest Break
Total Underpayment Amounts
Proportion of
Underpayment
52.
Pei-Chan CHEN (Iris)
-$59.35
-$1,283.03
-$162.75
-$120.21
-$1,625.34
2.07%
53.
PERGEGAJ Anila
N/A
-$12.85
N/A
-$6.94
-$19.79
0.03%
54.
Ping-Wei YANG (Jeff)
-$0.16
-$713.03
-$167.30
-$75.10
-$955.59
1.21%
55.
POGAI Lian
-$2.81
-$19.64
N/A
-$6.94
-$29.39
0.04%
56.
Quentin ROUSSEL
N/A
-$134.90
N/A
-$13.88
-$148.78
0.19%
57.
SHACKELL Lynette
N/A
-$116.32
N/A
-$13.88
-$130.20
0.17%
58.
Shuk Yu WONG
N/A
-$108.31
N/A
-$17.35
-$125.66
0.16%
59.
Sidney GEERCKE
N/A
-$143.06
N/A
-$17.35
-$160.41
0.20%
60.
TAI SHING Fan
N/A
-$86.53
N/A
-$6.94
-$93.47
0.12%
61.
TANG Shu Mui
-$0.99
-$105.26
N/A
-$10.41
-$116.66
0.15%
62.
TEPA Ann
N/A
-$9.79
N/A
-$6.94
-$16.73
0.02%
63.
THAN Thanda
N/A
-$127.18
N/A
-$13.88
-$141.06
0.18%
64.
Trenton James OEHM
-$38.75
-$1,257.51
-$295.20
-$158.58
-$1,750.04
2.22%
65.
Troy APPS
N/A
-$1.55
N/A
-$4.37
-$5.92
0.01%
66.
TSAI Meng Ting
-$466.63
-$2,950.87
-$377.22
-$266.94
-$4,061.66
5.16%
67.
Wai Hang TING
N/A
-$898.01
N/A
-$83.28
-$981.29
1.25%
68.
WAI NING Ma
-$0.01
-$89.35
N/A
-$6.94
-$96.30
0.12%
69.
Wei-Tien CHANG (Jill)
-$94.18
-$2,830.85
-$416.33
-$266.94
-$3,608.30
4.59%
70.
WENG Yao- Ching (Fiona)
-$103.08
-$2,105.25
-$454.71
-$214.89
-$2,877.93
3.66%
71.
WILLIAMS John
-$0.16
-$1,170.97
-$120.87
-$113.27
-$1,405.27
1.79%
72.
WIN Naing
N/A
-$372.96
N/A
-$20.82
-$393.78
0.50%
73.
WONG Ching Yi (Ginne)
-$810.80
-$2,355.65
-$581.69
-$205.47
-$3,953.61
5.03%
74.
WU Yue Ping
N/A
-$70.49
N/A
-$6.94
-$77.43
0.10%
75.
Xung Skene Lam
N/A
-$124.51
N/A
-$20.82
-$145.33
0.18%
76.
Yen Jung CHEN
N/A
-$14.43
N/A
N/A
-$14.43
0.02%
77.
Yi-Hung LIAO (Get)
-$17.69
-$1,260.55
N/A
-$124.92
-$1,403.16
1.78%
78.
YU Ka Ho (Ivan)
-$20.14
-$1,522.87
N/A
-$159.62
-$1,702.63
2.16%
A
B
C
D
E
F
Line
Employee
Hourly
Rate
Casual
Loading
Public
Holiday
Rate
Paid Rest Break
Total Underpayment Amounts
Proportion of
Underpayment
79.
Yu Mei Lin (May)
N/A
-$34.96
N/A
-$6.94
-$41.90
0.05%
Junior Employees
80.
DONALDSON Jarae
-$53.50
-$93.17
N/A
-$17.01
-$163.68
0.21%
Totals:
-$4,622.41
-$57,700.89
-$9,090.96
-$5,801.58
-$78,664.91
100.00%
SCHEDULE B
(List of employees paid an hourly rate who did not receive superannuation contribution information in their payslips)
Line
Employee Name
Line
Employee Name
1.
Amanda SMITH
39.
LEE Tak Wai (David)
2.
Amelie CLARIGO
40.
LI Fang Zhan
3.
Anthony LOYSON
41.
LIU Pei Fang
4.
ARMITAGE Sue
42.
Mei-Chen LU (Cindy)
5.
Benjamin GONTRAN- MASSEY
43.
MIRETTI Maeva
6.
Beverley MARAE
44.
MONDEN Miho
7.
CHAN Wing Yan (Kacie)
45.
MORRIS Gregory
8.
CHANG Lei
46.
Ng Tung Cheong (Charles)
9.
CHEN Jia Sing
47.
Pei-Chan CHEN (Iris)
10.
CHEN Kun-Yu (David)
48.
Ping-Wei YANG (Jeff)
11.
Che-Yu HE (Aaron)
49.
POGAI Lian
12.
Chi Sang CHUI
50.
Quentin ROUSSEL
13.
Chia Li CHEN
51.
SHACKELL Lynette
14.
Chia-Jung HSIEH (Jay)
52.
Shuk Yu WONG
15.
CHING Lai
53.
Sidney GEERCKE
16.
Ching-Chuan KUO (Peggy)
54.
TAI SHING Fan
17.
Chu-Kang WU (Justin)
55.
TANG Shu Mui
18.
CLARK Kelly
56.
THAN Thanda
19.
CROSS Daniel
57.
Trenton James OEHM
20.
DAHMANI Sabrina
58.
TSAI Meng Ting
21.
Devon Hetzger
59.
TSAI Pei-Ju
22.
Elham Ghanei
60.
Wai Hang TING
23.
ESLAMI Reza
61.
WAI NING Ma
24.
Foloi Siu
62.
Wei-Tien CHANG (Jill)
25.
FONG Tung Ham (Ham)
63.
WENG Yao-Ching (Fiona)
26.
HASHIMOTO Risa
64.
WILLIAMS John
27.
Hon Shing YIP
65.
WIN Naing
28.
HSU Feng-Chih (Vincent)
66.
WONG Ching Yi (Ginne)
29.
HUANG Chia-Chi (Jessie)
67.
WU Yue Ping
30.
HUANG Sai Ping
68.
Xung Skene Lam
31.
HUNG Ya Chuan (Sophia)
69.
Yen Jung CHEN
32.
I Chu LIU
70.
Yi-Hung LIAO (Get)
33.
Ka Kit TSOI
71.
YU Ka Ho (Ivan)
34.
Kellie MCRAE
72.
Yu Mei Lin (May)
35.
Keng Han Chieh
36.
KWAN Man Chun
37.
Kylie Johnston (JOHNSTONE)
38.
LAI Ya Juan (Becky)
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
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