Fair Work Ombudsman v Praglowski

Case [2010] FMCA 621


FEDERAL MAGISTRATES COURT OF AUSTRALIA

FAIR WORK OMBUDSMAN v PRAGLOWSKI [2010] FMCA 621

INDUSTRIAL LAW – Underpayment of basic rates of pay and non payment of casual loadings – civil penalty – consideration of matters relevant to penalty.

PRACTICE AND PROCEDURE – Removal of a company in liquidation as an unnecessary and inappropriate respondent.

Corporations Act 2001 (Cth), s.471B
Crimes Act 1914 (Cth), ss.4AA
Fair Work Act 2009 (Cth), ss.687, 701
Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), s.11
Workplace Relations Act 1996 (Cth), ss.4, 171, 182, 185, 208, 717, 718, 719, 722, 728
Australian Ophthalmic Supplies Pty Ltd v McAlary-Smith [2008] FCAFC 8
Clothing and Allied Trades Union v Snugglerite Industries Pty Ltd (1990) 34 IR 124
Cotis v Macpherson [2007] FMCA 2060
CPSU v Telstra Corporation Limited (2001) 108 IR 228
Gibbs v Mayor, Councillors and Citizens of City of Altona (1992) 37 FCR 216
Kelly v Fitzpatrick (2007) 166 IR 14; [2007] FCA 1080
Lynch v Buckley Sawmills Pty Ltd [1984] FCA 306; (1984) 3 FCR 503
McIver v Healey [2008] FCA 425
Mason v Harrington Corporation Pty Ltd t/as Pangaea Restaurant & Bar [2007] FMCA 7
Mornington Inn Pty Ltd v Jordan [2008] FCAFC 70
Ponzio v B&P Caelli Constructions Pty Ltd (2007) 158 FCR 543
Quinn v Martin (1977) 16 ALR 141
Rajagopalan v BM Sydney Building Materials Pty Ltd [2007] FMCA 1412
Seymour v Stawell Timber Industries Pty Ltd (1985) 9 FCR 241
Sharpe v Dogma Enterprises Pty Ltd [2007] FCA 1550
Workplace Ombudsman v Saya Cleaning Pty Ltd & Anor [2009] FMCA 38
Workplace Ombudsman v Securit-E Holdings Pty Ltd (In Liquidation) & Ors [2009] FMCA 700
Applicant: FAIR WORK OMBUDSMAN
Respondent: ANDRE PRAGLOWSKI
File Number: SYG 956 of 2010
Judgment of: Driver FM
Hearing date: 16 August 2010
Delivered at: Sydney
Delivered on: 28 October 2010

REPRESENTATION

Solicitors for the Applicant: Ms L Andelman
Solicitors for the Respondent: Mr S Shneider
Houston, Dearne, O’Connor Solicitors

ORDERS

The Court notes the following admissions:

  1. Country Hospitality Pty Ltd (in liquidation) contravened the following provisions of the Workplace Relations Act 1996 (Cth):

    (a)section 182(3) by failing to pay its employees at a rate at least equal to the federal minimum wage for each hour worked; and

    (b)section 185(2) by failing to pay its employees a guaranteed casual loading of 20 per cent for each hour worked.

    leading to an underpayment of $38,895.13.

  2. The respondent, by reason of the operation of s.728(1) of the Workplace Relations Act, was involved in the contraventions of the Workplace Relations Act as set out above.

The Court orders that:

  1. The respondent pay a penalty of $5,940 for his involvement in the contraventions.

  2. The penalty be paid within 28 days.

  3. The penalty payable under order (1) be paid to the Consolidated Revenue of the Commonwealth, pursuant to s.841(a) of the Workplace Relations Act 1996 (Cth).

FEDERAL MAGISTRATES
COURT OF AUSTRALIA
AT SYDNEY

SYG 956 of 2010

FAIR WORK OMBUDSMAN

Applicant

And

ANDRE PRAGLOWSKI

Respondent

REASONS…

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Fair Work Ombudsman v Praglowski [2010] FMCA 621
Case
[2010] FMCA 621
Decision Date

CaseChat Overview and Summary

In the case of Fair Work Ombudsman v Praglowski, the Fair Work Ombudsman brought an action against the respondent, alleging breaches of the Workplace Relations Act 1996 (Cth) by Country Hospitality Pty Ltd (in liquidation), involving the underpayment of basic rates of pay and non-payment of casual loadings. The court had to determine the appropriate civil penalty for the respondent's involvement in these contraventions. Additionally, the court considered the appropriateness of Country Hospitality Pty Ltd (in liquidation) remaining as a respondent in the proceedings.

The legal issues the court had to address included the quantum of the penalty for the respondent's involvement in the contraventions, and whether Country Hospitality Pty Ltd (in liquidation) should remain as a party in the proceedings. The court had to balance the need for accountability with the practicalities of enforcing penalties against a company in liquidation.

The court found that the respondent was involved in the contraventions as per the operation of section 728(1) of the Workplace Relations Act. It noted the admissions made regarding the underpayment of employees. The court emphasised the importance of holding individuals accountable for breaches of workplace laws, even when the company is in liquidation. It removed Country Hospitality Pty Ltd (in liquidation) as a respondent, deeming it unnecessary and inappropriate. The court ordered the respondent to pay a penalty of $5,940 within 28 days to the Consolidated Revenue of the Commonwealth.

The court's decision was aimed at ensuring that the respondent, who was involved in the contraventions, faced appropriate consequences for their actions. It underscored the necessity of enforcing workplace laws to protect employees' rights and ensure fair pay. The removal of the company in liquidation as a respondent highlighted the court's focus on holding the right parties accountable.

Orders

Orders of the court

The Court notes the following admissions:

1.

Country Hospitality Pty Ltd (in liquidation) contravened the following provisions of the Workplace Relations Act 1996 (Cth):

(a) section 182(3) by failing to pay its employees at a rate at least equal to the federal minimum wage for each hour worked; and

(b) section 185(2) by failing to pay its employees a guaranteed casual loading of 20 per cent for each hour worked.

leading to an underpayment of $38,895.13.

2.

The respondent, by reason of the operation of s.728(1) of the Workplace Relations Act, was involved in the contraventions of the Workplace Relations Act as set out above.

The Court orders that:

1.

The respondent pay a penalty of $5,940 for his involvement in the contraventions.

2.

The penalty be paid within 28 days.

3.

The penalty payable under order (1) be paid to the Consolidated Revenue of the Commonwealth, pursuant to s.841(a) of the Workplace Relations Act 1996 (Cth).

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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