Fair Work Ombudsman v The Hub @ Mermaid Pty Ltd

The Fair Work Ombudsman (FWO) brought proceedings against The Hub @ Mermaid Pty Ltd (the Company) in the Federal Circuit and Family Court of Australia. The dispute concerned allegations that the Company had contravened provisions of the *Fair Work Act 2009* (Cth) by failing to pay an employee, Ms. Kym Davies, her minimum entitlements. Specifically, the FWO alleged that the Company had failed to pay Ms. Davies the correct minimum hourly rate, overtime rates, and penalty rates for work performed on weekends and public holidays, and had also failed to provide her with accrued but untaken annual leave upon termination of her employment.

The central legal issues before the Court were whether the Company had contravened section 45 of the *Fair Work Act* by failing to pay Ms. Davies the minimum wage rates prescribed by the relevant modern award, and whether it had contravened section 50 of the *Fair Work Act* by failing to pay her appropriate overtime and penalty rates. Furthermore, the Court was required to determine if the Company had breached section 90 of the *Fair Work Act* by failing to pay Ms. Davies for her accrued but untaken annual leave upon the termination of her employment.

Judge Jarrett found that the Company had indeed contravened the *Fair Work Act* as alleged by the FWO. The Court applied the principles of statutory interpretation to the relevant provisions of the *Fair Work Act* and the applicable modern award. The evidence presented established that Ms. Davies had not been paid the minimum rates required by the award, nor had she received the correct entitlements for overtime, weekend, and public holiday work. The Court also determined that the Company had failed to pay Ms. Davies for her accrued annual leave upon termination, which constituted a further contravention. The Court considered the objective of the *Fair Work Act* to be the provision of a balanced framework for cooperative and productive workplace relations that promotes national economic prosperity and social inclusion, and found that the Company's actions undermined these objectives.

The Court ordered The Hub @ Mermaid Pty Ltd to pay pecuniary penalties totalling $10,800 for the contraventions. Additionally, the Company was ordered to rectify the underpayments to Ms. Davies, which amounted to $10,000.