Fair Work Ombudsman v JS Top Pty Ltd & Anor

The Federal Circuit Court of Australia heard proceedings brought by the Fair Work Ombudsman against JS Top Pty Ltd and its sole director and shareholder, Jim Chien Ching Chang. The dispute concerned alleged contraventions of the *Fair Work Act 2009* (Cth) and the *Fair Work Regulations 2009* (Cth) by JS Top Pty Ltd, with Mr Chang alleged to have been involved in these contraventions. The contraventions included the underpayment of entitlements to eight employees, failing to maintain accurate employee records, and making use of false or misleading employee records.

The court was required to determine the extent of JS Top Pty Ltd's contraventions of the *Fair Work Act* and *Fair Work Regulations*, specifically in relation to the underpayment of minimum wages, casual loadings, and shiftwork rates under the General Retail Industry Award 2010. Additionally, the court had to consider contraventions relating to the failure to create and maintain employee records, and the knowing use of false or misleading records. The court also had to determine the extent of Mr Chang's involvement in these contraventions for the purposes of s.550(1) of the Act.

The court found that JS Top Pty Ltd had contravened the *Fair Work Act* by failing to pay employees the minimum hourly wage, casual loading, and various shiftwork rates prescribed by the General Retail Industry Award 2010. Furthermore, the court determined that JS Top Pty Ltd had contravened provisions of the Act and Regulations by failing to make accurate employee records detailing remuneration and hours worked, and by knowingly using false or misleading records, including through the 7-Eleven Payroll System and in response to a Notice to Produce. Mr Chang was found to have been involved in all of these contraventions.

Consequently, the court ordered JS Top Pty Ltd to pay pecuniary penalties totalling $140,000 and Mr Chang to pay pecuniary penalties totalling $28,000. By consent, the court also made further orders requiring JS Top Pty Ltd to engage an external auditor to conduct a compliance audit of its workplace relations practices, display a workplace notice detailing employee entitlements, and to attempt to resolve any future complaints from employees.