Fair Work Ombudsman v Northcoast Security Services Group Pty Ltd & Ors (No.2)

The Fair Work Ombudsman applied for pecuniary penalties against Northcoast Security Services Group Pty Ltd (the second respondent) and Mr. John Michael Smith (the third respondent), alleging their involvement in contraventions of an award by the first respondent, Northcoast Security Services Pty Ltd. The contraventions concerned the failure to pay amounts owing under the award to a number of alleged employees. The court was required to determine whether the first respondent was the employer of these alleged employees, and if so, whether the second and third respondents had the requisite knowledge of the facts constituting the contraventions and the applicability of the award to the employees.

The court found that the first respondent was indeed the employer of the alleged employees. It further determined that both the second and third respondents possessed knowledge of the facts that constituted the first respondent's failure to pay the employees amounts owing under the award. Crucially, the court also found that each of the second and third respondents was aware that an award applied to these employees. Consequently, the court concluded that each of the second and third respondents was involved in the first respondent's contraventions of the award. The court also reserved leave to hear further argument on its power to order compensation to any of the employees, given that they were not parties to the proceeding.