Fair Work Ombudsman v Ozkorea Pty Ltd & Ors (No.2)

The Fair Work Ombudsman sought the imposition of pecuniary penalties against OzKorea Pty Ltd and Sung Gun Hwang for contraventions of the *Fair Work Act 2009* (Cth) and the *Cleaning Services Award 2010*. These contraventions, which included underpayments and failures to keep accurate records, occurred over two distinct periods: 1 January 2014 to 12 January 2015, involving Mr Hwang as a sole trader, and 13 January 2015 to 1 September 2015, involving OzKorea Pty Ltd, of which Mr Hwang was the sole director. Penalties were also sought against Pioneer Facility Services Pty Ltd and Pioneer Contracting Services Pty Ltd for being knowingly concerned in these breaches. The court had previously found that the breaches had occurred.

The court was required to determine the extent to which Sung Gun Hwang, OzKorea Pty Ltd, Pioneer Facility Services Pty Ltd, and Pioneer Contracting Services Pty Ltd were involved in the contraventions, and to impose appropriate pecuniary penalties. Specifically, the court needed to assess the involvement of each entity within the meaning of section 550 of the Act and then determine the quantum of penalties to be imposed on each party for their respective contraventions and involvement.

McNab J found that Sung Gun Hwang was involved in each of OzKorea Pty Ltd’s contraventions. Pioneer Facility Services Pty Ltd and Pioneer Contracting Services Pty Ltd were found to be involved in the underpayment contraventions of OzKorea Pty Ltd and Sung Gun Hwang. Consequently, Sung Gun Hwang was ordered to pay a total pecuniary penalty of $5,000, OzKorea Pty Ltd $20,400, Pioneer Facility Services Pty Ltd $17,000, and Pioneer Contracting Services Pty Ltd $17,000. All penalties were ordered to be paid to the Commonwealth within 28 days.