Fair Work Ombudsman v Sureguard Security Pty Ltd

Case

[2017] FCA 1566

22 December 2017


Details
AGLC Case Decision Date
Fair Work Ombudsman v Sureguard Security Pty Ltd [2017] FCA 1566 [2017] FCA 1566 22 December 2017

CaseChat Overview and Summary

The Fair Work Ombudsman brought proceedings against Sureguard Security Pty Ltd for admitted contraventions of the Fair Work Act 2009 (Cth) and the Security Services Industry Award 2010 (Cth). The contraventions included failure to pay casual loading, allowances, and minimum, overtime, and penalty rates of pay. The case was heard in the Federal Court of Australia, where the court was required to decide on the appropriate penalties for the contraventions and whether the contraventions should be grouped for the purposes of penalty assessment. The court also needed to consider the nature and extent of the contraventions and the impact on the employees.

The court held that the contraventions should be grouped to reduce the number of discrete contravention areas for penalty imposition. The court adopted the respondent's submission to group the night span contraventions and penalty rate contraventions, resulting in six groups of contraventions. The court considered that the contraventions involved the same "criminality" and did not need to be broken down into different categories of employees. The court also accepted the applicant's submissions on the nature and extent of the contravening conduct, finding that the contraventions resulted in significant underpayments to employees, with ten employees underpaid in excess of $10,000 over a 12-month period.

The court imposed pecuniary penalties for the contraventions, with the total penalties amounting to $101,370. The court also ordered the respondent to engage a suitably qualified compliance professional or legal practitioner to conduct training on compliance with wages and work-related entitlements under the Modern Award and the National Employment Standards. The respondent was required to notify the applicant of the training attendees and the name(s) of the person(s) who conducted the training.

The court's final orders included the payment of pecuniary penalties by the respondent and the requirement for the respondent to engage in compliance training and notify the applicant of the training details. The court's decision highlights the importance of compliance with workplace relations laws and the consequences of non-compliance for both employers and employees.
Details

Areas of Law

  • Industrial Law

Legal Concepts

  • Contract Formation

  • Breach of Contract

  • Compensatory Damages

  • Civil Penalty

  • Industrial Relations

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Cases Cited

12

Statutory Material Cited

1

Pearce v The Queen [1998] HCA 57
Johnson v The Queen [2004] HCA 15