Fair Work Ombudsman v Northcoast Security Services Group Pty Ltd & Ors (No.3)

In *Fair Work Ombudsman v Northcoast Security Services Group Pty Ltd & Ors (No.3)*, heard by Judge Manousaridis in the Federal Court of Australia, the Fair Work Ombudsman (FWO) sought pecuniary penalties against Northcoast Security Services Group Pty Ltd and its directors for contraventions of sections 45 and 323(1) of the *Fair Work Act 2009* (Cth). The proceedings also concerned the FWO's ability to obtain orders for compensation for underpaid employees under section 545(2)(b) of the Act, and whether such compensation could be paid to the FWO for onward distribution to the affected employees.

The court was required to determine whether the FWO could be granted compensation orders under section 545(2)(b) of the FW Act, and if so, whether these orders could be structured to involve payment to the FWO for subsequent disbursement to the employees. A further issue was whether the compensable loss under section 545(2)(b) against a person involved in another's contravention was restricted to loss directly caused by that person's accessory conduct.

Judge Manousaridis held that the FWO could indeed apply for and be granted compensation orders under section 545(2)(b). The court found that the loss for which compensation could be ordered against an accessory was not limited to loss caused solely by their specific accessory conduct. Furthermore, the court determined that it had the power to make orders requiring compensation to be paid to the FWO, with the FWO then to pay those amounts to the relevant employees. The court considered the circumstances and made orders for the payment of pecuniary penalties and compensation.