Fair Work Ombudsman v Soleimani & Anor

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FEDERAL CIRCUIT COURT OF AUSTRALIA

FAIR WORK OMBUDSMAN v SOLEIMANI & ANOR [2014] FCCA 2380
Catchwords:
INDUSTRIAL LAW – Penalty hearing for contraventions of Fair Work Act 2009 – admitted liability for contraventions – agreed penalty range – applicable test for penalty.

Legislation:

Fair Work Act 2009, ss.45, 546(3), 546(1), 535(1), 44(1), 90(11), 90(2), 536(1), 536(2), 712, 539(2), 12

Crimes Act 1914, s.4AA(1)
Fair Work Regulations 2009, rr.3.33(3), 3.37(1), 3.46(1)(d), 3.46(5)(b)

Gibbs v Mayor, Councillors & Citizens of City of Altona (1992) 37 FCR 216 at 223 (Gibbs)
McIver v Healey [2008] FCA 425 at 16 (unreported, Federal Court of Australia, 7 April 2008 Marshall J
Australian Opthalmic Supplies Pty Ltd v McAlary-Smith [2008] FCAFC 8 AT [46] (Graham J) (unreported, Full Court of the Federal Court of Australia, 20 February 2008, Gray, Graham and Buchanan JJ) (Merringtons)
Mornington Inn Pty Ltd v Jordan [2008] FCAFC 70 at [41] – [46] (Stone & Buchanan JJ) (unreported, Full Court of the Federal Court of Australia, 7 May 2008, Gyles, Stone and Buchanan JJ) (Mornington Inn)
Mason v Harrington Corporations Pty Ltd [2007] FMCA
Australian Building and Construction Commissioner v Construction Forestry, Mining Employees Union [2012] FCA 189
Fair Work Ombudsman v Taj Palace Tandoori Indian Restaurant Pty Ltd & Anor [2012] FMCA 258 at [67]
Fair Work Ombudsman v Saya Cleaning Pty Ltd [2009] FMCA 28 at [20]
Rajagopalan v BM Sydney Building Materials Pty Ltd [2007] FMCA 1412
Fair Work Ombudsman v La Kosta  Childcare Centre & Kindergarten Pty Ltd [2012] FMCA 551 at [59]
Fair Work Ombudsman v CAN 052182180 Pty Ltd & Uri Burke [2013] FCCA 688
Fair Work Ombudsman v Orwill Pty Ltd & Ors [2011] FMCA 730 at [21]
Re Trade Practices Commission v CSR Limited (1991) 13 ATPR 41-076
Plancor Pty Ltd v Liquor, Hospitality & Miscellaneous Union (2008) 171 FCR 357; (2008) 177 IR 243: [2008] FCAFC 170 at [37]
Ponzio v B & P Cailli Constructions Pty Ltd (2007) 158 FCR 543: (2007) 162 IR 444: [2008] FCAFC 65 at [93]
Community & Public Sector Union v Telstra Corporation Limited (2001) 108 IR 228; [2001] FCA at [230]-[231]
Fair Work Ombudsman v Maclean Bay Pty Ltd (No.2) [2012] FCA 557
Williams v Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union [2010] FCA 754
Cruse v Multiples Ltd (2008) 172 FCR 279 at [59]
Australian Competition Consumer v Midland Brick Co Pty Ltd (2004) 207 ALR 329 at [20] to [21]
Fair Work Ombudsman v Kenwood Industries Pty Ltd(No.2) [2010] FCA 1156
Fair Work Ombudsman v Tiger Telco Pty Ltd (in liq) [2012] FCA 479 at [36]
Australian Competition and Consumer Commission v Dataline.net.au Pty Ltd[2006] FCA 1427, Kiefel J, at [52] to [59]

Applicant: FAIR WORK OMBUDSMAN
First Respondent: FARDIN SOLEIMANI
Second Respondent: BEVERLY JANET SOLEIMANI
File Number: MLG 947 of 2013
Judgment of: Judge Jones
Hearing date: 4 August 2014
Date of Last Submission: 4 August 2014
Delivered at: Melbourne
Delivered on:
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Details
Case
[2014] FCCA 2380
Decision Date

CaseChat Overview and Summary

The Fair Work Ombudsman (FWO) brought proceedings against Mr. Soleimani and his company, Soleimani Pty Ltd, alleging breaches of the *Fair Work Act 2009* (Cth) (the Act). The dispute concerned alleged underpayments of wages and entitlements to employees of Soleimani Pty Ltd, and the alleged contravention of record-keeping and pay slip obligations under the Act. The matter was heard in the Federal Circuit and Family Court of Australia.

The court was required to determine whether Mr. Soleimani and Soleimani Pty Ltd had contravened specific provisions of the Act relating to minimum wages, annual leave, personal/carer's leave, and redundancy pay. Furthermore, the court had to consider whether Mr. Soleimani was personally liable for the alleged contraventions of the company, pursuant to section 550 of the Act, which deals with accessory liability. The FWO also sought declarations and pecuniary penalties for the alleged breaches.

In reaching its decision, the court applied the principles of statutory interpretation to the relevant sections of the Act. It considered the evidence presented by the FWO regarding the employment arrangements and the payment records, or lack thereof, for the employees. The court found that both Mr. Soleimani and Soleimani Pty Ltd had contravened the Act by failing to pay minimum entitlements and by failing to keep accurate records and issue compliant pay slips. The court also found Mr. Soleimani to be knowingly concerned in, or party to, the company's contraventions, thus establishing his personal liability under section 550 of the Act.

The court ordered Soleimani Pty Ltd to pay the outstanding underpayments to the affected employees and imposed pecuniary penalties on both the company and Mr. Soleimani for the contraventions.

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