FEDERAL MAGISTRATES COURT OF AUSTRALIA
| FWO v PROMOTING U PTY LTD & ANOR | [2012] FMCA 58 |
| INDUSTRIAL LAW – Application for civil penalties – agreed statement of facts – numerous contraventions of industrial law – consideration of range of penalty to be applied – consideration and application of the totality principle. |
| Workplace Relations Act 1996, s.235(2) Workplace Relations Regulations 1996 Fair Work Act 2009 Evidence Act 1995, s.128 |
| Ferrall and Others v Blyton; Attorney-General of the Commonwealth (2000) 27 Fam LR 178 Lida Song v Ming Ying (2010) 273 ALR 213 Cornwell v R (2007) 231 CLR 260 Gibbs v Mayor, Councillors and Citizens of City of Altona (1992) 37 FCR 216 Mason v Harrington Corp Pty Ltd t/as Pangaea Restaurant & Bar [2007] FMCA 7 Kelly v Fitzpatrick (2007) 166 IR 14 Australian Ophthalmic Supplies Pty Ltd v McAlary-Smith [2008] FCAFC 8 A & L Silvestri Pty Limited v Construction, Forestry, Mining and Energy Union [2008] FCA 466 Ponzio v B & P Caelli Constructions Pty Ltd [2007] FCAFC 65 |
| Applicant: | FAIR WORK OMBUDSMAN |
| First Respondent: | PROMOTING U PTY LTD A.C.N. 124 022 224 |
| Second Respondent: | SEBASTIAN BOI |
| File Number: | MLG 1778 of 2010 |
| Judgment of: | Burchardt FM |
| Hearing date: | 25 November 2011 |
| Date of Last Submission: | 13 December 2011 |
| Delivered at: | Melbourne |
| Delivered on: | 3 February 2012 |
REPRESENTATION
| Counsel for the Applicant: | Ms Richards |
| Solicitors for the Applicant: | Office of the Fair Work Ombudsman |
| Counsel for the Respondents: | Mr McKenna |
| Solicitors for the Respondents: | Hutchinson Legal |
ORDERS
THE COURT DECLARES THAT:
The First and Second Respondents each contravened:
(a)During the period from 18 October 2007 to 30 June 2009, s.182(1) of the Workplace Relations Act 1996 (Cth) (“WR Act”) in relation to Angeli, Adams and Tan by failing to pay the guaranteed basic periodic rate of pay contained in the preserved Australian Pay and Conditions Scale (“APSC”) derived from the Graphic Arts – General Award 2000 (“the Award”);
(b)During the period from 1 July 2009 to 9 December 2009, s.182(1) of the WR Act and item 5, schedule 16 of the Fair Work(Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (“Transitional Act”) in relation to Adams and Tan by failing to pay the guaranteed basic periodic rate of pay contained in the preserved APCS derived from the Award;
(c)Section 185(2) of the WR Act in relation to Angeli by failing to pay at least the guaranteed casual loading contained in the preserved APCS derived from the Award;
(d)Section 235(2) of the WR Act and item 6(1)(a) of schedule 16 of the Transitional Act in relation to Adams and Tan by failing to pay accrued annual leave on termination of employment;
(e)Section 323(1) of the Fair Work Act 2009 (Cth) (“FW Act”) in relation to Adams and Tan by failing to pay amounts payable in relation to the performance of work in full and at least monthly;
(f)Regulation 19.11(1) and regulation 19.11(4) of the Workplace Relations Regulations 2006 (Cth) (“WR Regulations
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- Case
- [2012] FMCA 58
- Decision Date
CaseChat Overview and Summary
The court was required to determine whether the respondents had contravened specific provisions of the Workplace Relations Act 1996 (Cth), the Fair Work Act 2009 (Cth), and the relevant regulations by not adhering to the stipulated pay rates, leave entitlements, and record-keeping requirements for their employees. The court had to consider the evidence presented by the Fair Work Ombudsman and the respondents to ascertain whether the contraventions occurred as alleged and, if so, the appropriate remedies and penalties under the relevant legislation.
The court found that the respondents had indeed contravened the provisions of the Workplace Relations Act 1996 (Cth), the Fair Work Act 2009 (Cth), and the regulations by failing to pay the correct rates of pay, annual leave, and other entitlements to their employees. The court detailed the specific contraventions and the periods during which they occurred. It also considered the penalties applicable under the legislation and ordered the respondents to pay specified penalties and back payments to the affected employees. The penalties were calculated based on the severity and frequency of the contraventions, and the court also ordered the payment of interest on the back payments. The court mandated a repayment schedule for the back payments and interest to be followed by the respondents.
In summary, the court declared that the respondents had contravened several sections of the Workplace Relations Act 1996 (Cth) and the Fair Work Act 2009 (Cth) and ordered them to pay penalties, back payments, and interest to the affected employees. The court also specified the method and schedule for the payment of these amounts.
Orders
Orders of the court
THE COURT DECLARES THAT:
1.
The First and Second Respondents each contravened:
(a) During the period from 18 October 2007 to 30 June 2009, s.182(1) of the Workplace Relations Act 1996 (Cth) (“WR Act”) in relation to Angeli, Adams and Tan by failing to pay the guaranteed basic periodic rate of pay contained in the preserved Australian Pay and Conditions Scale (“APSC”) derived from the Graphic Arts – General Award 2000 (“the Award”);
(b) During the period from 1 July 2009 to 9 December 2009, s.182(1) of the WR Act and item 5, schedule 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (“Transitional Act”) in relation to Adams and Tan by failing to pay the guaranteed basic periodic rate of pay contained in the preserved APCS derived from the Award;
(c) Section 185(2) of the WR Act in relation to Angeli by failing to pay at least the guaranteed casual loading contained in the preserved APCS derived from the Award;
(d) Section 235(2) of the WR Act and item 6(1)(a) of schedule 16 of the Transitional Act in relation to Adams and Tan by failing to pay accrued annual leave on termination of employment;
(e) Section 323(1) of the Fair Work Act 2009 (Cth) (“FW Act”) in relation to Adams and Tan by failing to pay amounts payable in relation to the performance of work in full and at least monthly;
(f) Regulation 19.11(1) and regulation 19.11(4) of the Workplace Relations Regulations 2006 (Cth) (“WR Regulations”) in relation to Adams by failing to keep records in relation to rates of remuneration and payments made;
(g) Section 535 of the FW Act in relation to Adams and Tan by:
(i) Failing to keep records in relation to rates of remuneration as required by Regulation 3.33 of the Fair Work Regulations 2009 (Cth) (“FW Regulations”); and
(ii) Failing to keep records in relation to payment as required by Regulation 3.36 of the FW Regulations;
(h) Section 536(1) of the FW Act in relation to Tan and Bryant by failing to give a payslip within one working day of payment to the employee.
(i) Section 44(1) of the FW Act in relation to Bryant by contravening a provision of the National Employment Standards, by failing to pay accrued leave on termination of employment pursuant to section 90(2) of the FW Act; and
(j) Section 45 of the FW Act in relation to Bryant by contravening terms of a modern award, by contravening the Graphic Arts, Printing and Publishing Award 2010 (“the Modern Award”) by;
(i) Failing to pay Bryant the minimum wages set out in Clause 17.1 of the Modern Award;
(ii) Failing to pay wages to Bryant no more than two clear days after the end of the pay week in respect of which they became due pursuant to Clause 28.1 of the Modern Award; and
(iii) Failing to pay Bryant all monies due to him on termination of employment pursuant to Clause 28.5 of the Modern Award.
THE COURT ORDERS THAT:
1.
Pursuant to s.719(1) of the WR Act, regulation 14.4 of the WR Regulations, and s.546(1) of the FW Act the First Respondent pay an aggregate penalty of $65,000 in respect of the contraventions referred to in declarations 1(a) to 1(j) above.
2.
Pursuant to s.719(1) of the WR Act, regulation 14.4 of the WR Regulations, and s.546(1) of the FW Act the Second Respondent pay an aggregate penalty of $13,000 in respect of the contraventions referred to in declarations 1(a) to 1(j) above.
3.
Pursuant to s.719(6) of the WR Act and s.545(2) of the FW Act the First Respondent pay:
(a) $5,013.73 to Adams; and
(b) $1,998.13 to Tan.
4.
Pursuant to s.545(2) of the FW Act the First Respondent pay $2,406.46 to Bryant.
5.
Pursuant to s.541(2) of the FW Act the First Respondent pay $528.15 to Bryant in respect of unpaid safety net contractual entitlements.
6.
Pursuant to s.722 of the WR Act and s.547 of the FW Act the First Respondent pay to the respective employees interest on the amounts referred to in the preceding Orders 3 to 5 above, in the amounts of:
(a) $ 635.21 to Adams;
(b) $ 235.04 to Tan; and
(c) $ 133.31 to Bryant.
7.
Payment of the amounts referred to in Orders 3 to 5 above is to be made in accordance with Schedule A, by way of bank cheque made out in the stipulated amount to the respective recipient, forwarded to the Applicant by the 15th day of each month.
8.
Payment of the interest amounts referred to in Order 6 above is to be made within 30 days of the last payment made pursuant to Schedule A, by way of bank cheque made out in the stipulated amount to each respective recipient and forwarded to the Applicant.
9.
Pursuant to s.841(a) of the WR Act and s.546(3)(a) of the FW Act each of the Respondents pay the penalties into the Consolidated Revenue Fund of the Commonwealth.
10.
The payment of penalties referred to in Orders 1 and 2 above be made within 90 of the date of this Order.
Schedule A - Repayment schedule to form basis of payment plan – based on $1,000 per month and in respect to principal underpayment amounts only (exclusive of interest)
Amounts Outstanding:
Angeli $534.05
Adams $5,479.68
Tan $1,998.13
Bryant $2,934.61 [$2,406.46 + $528.15]
Dates/Payments/Recipients:
15 November 2011:
· $534.05 to Angeli
· $465.95 to Adams
15 December 2011:
· $1000 to Adams
15 January 2012:
· $1000 to Adams
15 February 2012:
· $500 to Adams
· $500 to Tan
15 March 2012:
· $500 to Adams
· $500 to Tan
15 April 2012:
· $500 to Adams
· $500 to Tan
15 May 2012:
· $498.13 to Tan
· $501.87 to Adams
15 June 2012:
· $500 to Adams
· $500 to Bryant
15 July 2012:
· $511.31 to Adams (Additional $11.31 this month to finalise Adams’ payment in full)
· $500 to Bryant
15 August 2012:
· $1000 to Bryant
15 September 2012:
· $934.61 to Bryant
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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