Fair Work Ombudsman v Zillion Zenith International Pty Ltd & Anor

Case

[2014] FCCA 433

6 June 2014


Details
AGLC Case Decision Date
Fair Work Ombudsman v Zillion Zenith International Pty Ltd [2014] FCCA 433 [2014] FCCA 433 6 June 2014

CaseChat Overview and Summary

The Federal Circuit Court of Australia heard a dispute between the Fair Work Ombudsman and Zillion Zenith International Pty Ltd, along with its director, Mr. Jian Li. The Ombudsman alleged that Zillion Zenith International Pty Ltd had contravened provisions of the *Fair Work Act 2009* (Cth) by failing to pay two employees their minimum lawful entitlements, including minimum wages, overtime, and leave entitlements, over a period of approximately 18 months. Mr. Li was alleged to have been knowingly concerned in these contraventions.

The central legal issues before the Court were whether Zillion Zenith International Pty Ltd had indeed contravened the *Fair Work Act 2009* (Cth) by underpaying its employees, and if so, whether Mr. Li was knowingly concerned in those contraventions. The Court was required to determine the quantum of the underpayments and consider the appropriate penalties for the company and Mr. Li, as well as the necessity of orders for the repayment of the outstanding entitlements.

Judge O'Sullivan found that Zillion Zenith International Pty Ltd had contravened the *Fair Work Act 2009* (Cth) by failing to pay the minimum lawful entitlements to the two employees. The Court determined that Mr. Li was knowingly concerned in these contraventions, having been involved in the decision-making processes that led to the underpayments. The Court applied principles relating to minimum employment standards and the liability of individuals involved in corporate contraventions.

The Court ordered Zillion Zenith International Pty Ltd to pay the outstanding entitlements to the employees and imposed penalties on both the company and Mr. Li for the contraventions. Mr. Li was also ordered to pay a portion of the Fair Work Ombudsman's legal costs.
Details

Areas of Law

  • Employment Law

Legal Concepts

  • Breach

  • Penalty

  • Remedies

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Cases Cited

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Statutory Material Cited

7