Fair Work Ombudsman v Mordel Pty Ltd

The Fair Work Ombudsman (FWO) brought proceedings against Mordel Pty Ltd (Mordel) in the Federal Circuit Court of Australia. The dispute concerned Mordel's alleged contravention of the *Fair Work Act 2009* (Cth) by failing to pay an employee, Ms. K. L. Davies, her minimum entitlements under the National Employment Standards and the relevant award. The FWO sought pecuniary penalties for these alleged breaches.

The primary legal issue before the Court was whether Mordel had contravened section 44 of the *Fair Work Act 2009* (Cth) by failing to pay Ms. Davies the minimum hourly rate and overtime entitlements prescribed by the *Restaurant Industry Award 2010*. The Court was required to determine if Mordel's actions constituted a contravention of the Act and, if so, to consider the appropriate penalty.

Judge Jarrett found that Mordel had indeed contravened section 44 of the Act by failing to pay Ms. Davies her minimum entitlements. The Court reasoned that the evidence established that Ms. Davies was paid a flat rate of $20 per hour, which was below the minimum hourly rate stipulated in the *Restaurant Industry Award 2010* for her classification. Furthermore, Mordel had failed to pay her the correct overtime rates for hours worked beyond ordinary hours. The Court applied the principles of statutory interpretation to the *Fair Work Act 2009* and the *Restaurant Industry Award 2010*, concluding that Mordel's payment practices were unlawful.

The Court ordered Mordel Pty Ltd to pay pecuniary penalties totalling $10,200 for its contraventions. Additionally, Mordel was ordered to rectify the underpayments to Ms. Davies, which amounted to $10,000.