Fair Work Ombudsman v Kleen Group Pty Ltd & Anor

The Federal Court of Australia, constituted by Emmett J, considered a dispute between the Fair Work Ombudsman and Kleen Group Pty Ltd and Mr. David John Kleen. The proceedings concerned alleged contraventions of the *Fair Work Act 2009* (Cth) by Kleen Group Pty Ltd, with Mr. Kleen alleged to be knowingly concerned in those contraventions.

The primary legal issue before the Court was whether Kleen Group Pty Ltd had contravened section 45 of the *Fair Work Act 2009* (Cth) by failing to pay certain employees their minimum entitlements under the relevant award. A further issue was whether Mr. Kleen was knowingly concerned in these alleged contraventions, which would render him personally liable under section 550 of the Act.

Emmett J found that Kleen Group Pty Ltd had contravened section 45 of the *Fair Work Act 2009* (Cth) by failing to pay employees the minimum wages and entitlements prescribed by the relevant award. His Honour determined that Mr. Kleen was knowingly concerned in these contraventions, applying the principles established in cases such as *Fair Work Ombudsman v P&L Investments Pty Ltd* [2013] FCA 1369, which outline the test for establishing knowledge for the purposes of section 550. The Court considered the evidence presented regarding Mr. Kleen's involvement in the company's operations and his awareness of the employees' entitlements.

The Court ordered Kleen Group Pty Ltd to pay pecuniary penalties for the contraventions. Mr. Kleen was also ordered to pay a pecuniary penalty for being knowingly concerned in the contraventions. The Court also made orders for the payment of outstanding entitlements to the affected employees and for the respondent to pay the Fair Work Ombudsman's costs.