Fair Work Ombudsman v Mildura Battery Company Pty Ltd & Anor

The Fair Work Ombudsman (FWO) brought proceedings against Mildura Battery Company Pty Ltd and Mr. David John Smith, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned allegations that the company failed to pay employees their minimum lawful entitlements, including minimum wages, overtime, and annual leave, and that Mr. Smith, as a director, was knowingly concerned in these contraventions. The matter was heard in the Federal Circuit and Family Court of Australia.

The court was required to determine whether Mildura Battery Company Pty Ltd had contravened various provisions of the Act by failing to pay employees the correct minimum wages, overtime rates, and annual leave entitlements. Additionally, the court had to consider whether Mr. Smith was knowingly concerned in, or party to, these contraventions, thereby rendering him personally liable under section 550 of the Act.

Judge Turner found that the company had indeed contravened the Act by underpaying its employees. The court applied the principles of statutory interpretation to ascertain the minimum entitlements prescribed by the relevant modern award and enterprise agreement. Regarding Mr. Smith's liability, the court applied the test for being "knowingly concerned" in a contravention, which requires proof that the individual had knowledge of the essential facts that constituted the contravention, even if they did not know the contravention was unlawful. The evidence established that Mr. Smith was aware of the company's payroll practices and the amounts being paid to employees, and that these payments were less than their entitlements.

Consequently, the court ordered Mildura Battery Company Pty Ltd to pay pecuniary penalties for its contraventions and to rectify the underpayments to the affected employees. Mr. Smith was also found to be personally liable for his involvement and was ordered to pay a pecuniary penalty.