Fair Work Ombudsman v Port Douglas Investments as trustee for the Theo Sourlos Family Trust & Anor

In the Federal Circuit and Family Court of Australia, the Fair Work Ombudsman brought proceedings against Port Douglas Investments as trustee for the Theo Sourlos Family Trust and Mr Theo Sourlos personally. The dispute concerned alleged contraventions of the Fair Work Act 2009 (Cth) relating to the underpayment of an employee.

The court was required to determine whether Port Douglas Investments, as the employer, had contravened the Fair Work Act by failing to pay an employee the minimum wages and entitlements owed under the applicable award. A further issue was whether Mr Sourlos, as a director and controller of the corporate trustee, was personally liable for the contraventions, either as a person involved in the contraventions or under the accessory liability provisions of the Act.

Judge Vasta found that Port Douglas Investments had contravened the Fair Work Act by underpaying the employee. The court reasoned that the employer had failed to correctly classify the employee's role and, consequently, had not paid the appropriate minimum wage and entitlements as stipulated by the relevant award. Regarding Mr Sourlos's personal liability, the court determined that he was knowingly involved in the contraventions. His active participation in the decision-making processes that led to the underpayment, coupled with his awareness of the employee's entitlements, established his personal liability under section 550 of the Fair Work Act.

The court ordered Port Douglas Investments to pay the outstanding wages and entitlements to the employee, along with penalties for the contraventions. Mr Sourlos was also ordered to pay penalties for his involvement in the contraventions.