Fair Work Ombudsman v RS and JS Pty Ltd (in Liq)

The Fair Work Ombudsman (FWO) brought proceedings against RS and JS Pty Ltd (in Liq) (the Company) concerning alleged contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute centred on the Company's failure to pay redundancy entitlements to two employees upon their termination. The FWO sought pecuniary penalties against the Company for these alleged breaches.

The primary legal issue before the Federal Circuit and Family Court of Australia was whether the Company had contravened section 124 of the Act by failing to pay the requisite redundancy pay to the two employees. This required the court to determine if the employees were entitled to redundancy pay under the applicable modern award and, if so, whether the Company had a valid reason for not paying it, such as the redundancy being caused by the small business redundancy exemption.

Judge Hartnett found that the Company had contravened section 124 of the Act. The court determined that the redundancy exemption for small businesses, which requires an employer to have fewer than 15 employees, did not apply in this instance. The evidence presented indicated that the Company had 15 or more employees at the time of the redundancies, thereby disqualifying it from relying on the exemption. Consequently, the Company was found to have failed to pay the redundancy entitlements as required by the Act and the relevant modern award.