Fair Work Ombudsman v Ozone Manufacturing Pty Ltd (in Liquidation)

The Fair Work Ombudsman (FWO) brought proceedings against Ozone Manufacturing Pty Ltd (in Liquidation) and its director, Mr. Anthony John Smith, alleging contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned alleged underpayments of wages and entitlements to employees of Ozone Manufacturing, and the director's alleged personal liability for these contraventions. The matter was heard in the Federal Circuit and Family Court of Australia.

The primary legal issues before the Court were whether Ozone Manufacturing had contravened specific provisions of the Act by failing to pay employees their minimum entitlements, and whether Mr. Smith was personally liable for these contraventions under section 550 of the Act as a person involved in the company's contraventions. The FWO also sought pecuniary penalties against both the company and Mr. Smith.

Judge Brown found that Ozone Manufacturing had contravened the Act by failing to pay employees their minimum wages and entitlements, including annual leave and long service leave. The Court determined that Mr. Smith was personally involved in these contraventions, having been actively engaged in the management and operation of the company during the period of underpayment. Applying the principles of accessory liability under section 550 of the Act, the Court held that Mr. Smith had the requisite knowledge and participation to be found personally liable for the company's contraventions.

The Court ordered Ozone Manufacturing Pty Ltd (in Liquidation) to pay pecuniary penalties totalling $10,000 and Mr. Anthony John Smith to pay pecuniary penalties totalling $2,000. The Court also ordered that the company pay the outstanding employee entitlements, subject to the priority of creditors in the liquidation.