Fair Work Ombudsman v Sphere 38 (BNE) Pty Ltd

The Federal Circuit Court of Australia heard a matter between the Fair Work Ombudsman and Sphere 38 (BNE) Pty Ltd, along with an individual respondent. The dispute concerned alleged contraventions of the Fair Work Act 2009 (Cth) by Sphere 38 (BNE) Pty Ltd, which led to the issuance of a compliance notice. The proceedings sought to determine the appropriate penalties for these contraventions.

The court was required to consider the extent to which penalties should be discounted due to the respondents' conduct. Specifically, the court had to assess the significance of the first respondent's co-operation with the Fair Work Ombudsman's investigation, its subsequent rectification payments, and its admissions of guilt. The court also had to consider the impact of the COVID-19 pandemic on the first respondent's ability to comply with the terms of the compliance notice, particularly regarding the discussion of a payment plan.

Egan J reasoned that while the first respondent failed to contact the applicant to discuss a payment plan, it had otherwise co-operated with the investigation and made the required rectification payments. Furthermore, the admissions of guilt in the Statement of Facts and Admissions facilitated the resolution of the proceedings. Applying the principles from *Mornington Inn*, the court found that these actions demonstrated an acceptance of wrongdoing and a willingness to facilitate the course of justice, warranting a discount on the penalty. The court also acknowledged the significant impact of the COVID-19 pandemic on the first respondent's non-compliance.

Consequently, the court ordered Sphere 38 (BNE) Pty Ltd to pay a pecuniary penalty of $10,000.00 and the second respondent to pay a pecuniary penalty of $2,500.00, reflecting a substantial discount due to the mitigating factors.