Fair Work Ombudsman v Hu (No 3)

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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 61

Date 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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Details
Case
[2020] FCA 936
Decision Date

CaseChat Overview and Summary

In the matter of Fair Work Ombudsman v Hu (No 3), the Fair Work Ombudsman, acting as the Commonwealth's workplace relations regulator, sought pecuniary penalties against Binqi Hu for contraventions of sections 45 and 546 of the Fair Work Act 2009 (Cth). The contraventions related to the underpayment of wages to employees of HRS Country, a company for which Ms Hu was the director and sole shareholder. The contraventions included the failure to pay adult minimum hourly rates, casual loadings, public holiday rates, and paid rest breaks, as well as the failure to include prescribed information in payslips. The parties agreed on the penalties to be imposed, which amounted to $22,440 in total. The primary legal issue before the court was the imposition of penalties for the admitted contraventions of the Fair Work Act. The court had to consider whether the penalties proposed by the parties were appropriate, given the nature and extent of the contraventions.

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.

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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