Fair Work Ombudsman v Viplus Pty Ltd

The Fair Work Ombudsman (FWO) brought proceedings in the Federal Circuit and Family Court of Australia against Viplus Pty Ltd concerning alleged contraventions of the *Fair Work Act 2009* (Cth). The dispute centred on Viplus's failure to pay its employees their accrued but untaken annual leave entitlements upon termination of their employment, as required by the National Employment Standards (NES).

The primary legal issue before the Court was whether Viplus had contravened section 90 of the *Fair Work Act*, which mandates the payment of accrued but untaken annual leave upon termination. The Court was also required to determine the appropriate penalty for these contraventions, considering the nature and extent of the breaches.

Judge Mercuri found that Viplus had indeed contravened section 90 of the *Fair Work Act* by failing to pay annual leave entitlements to multiple employees upon their termination. The Court reasoned that the obligation to pay accrued annual leave is a fundamental component of the NES and that ignorance or oversight on the part of the employer does not excuse non-compliance. The Court considered the FWO's submissions regarding the need for deterrence and the importance of upholding minimum employment standards when determining the penalty.

Consequently, Viplus Pty Ltd was ordered to pay a penalty of $15,120 for its contraventions. In addition, the Court ordered Viplus to pay the outstanding annual leave entitlements to the affected employees, totalling $10,078.60.