Fair Work Ombudsman v Zucco Farming Pty Ltd

The Fair Work Ombudsman (applicant) commenced proceedings against Zucco Farming Pty Ltd (first respondent) and Mr. Zucco (second respondent) in the Federal Circuit and Family Court of Australia. The dispute concerned alleged contraventions of the *Horticulture Award 2020* by Zucco Farming Pty Ltd, which operated a stone fruit farm. The company had engaged two employees on a casual basis for approximately nine months, paying them wages below the minimum rates prescribed by the Award and failing to provide the applicable casual loading. The respondents initially denied the alleged misconduct.

The court was required to determine the appropriate civil penalty to be imposed on the respondents for the contraventions of the *Fair Work Act 2009* (Cth). This involved considering the principles applicable to the determination of civil penalties in the context of workplace law breaches, particularly where there has been an admission of liability and subsequent compliance.

Judge A Kelly applied the principles for determining civil penalties, which include considering the objective seriousness of the contravention, the need for deterrence (both specific and general), the size and nature of the employer, the employer's history of compliance, and any steps taken by the employer to remedy the contravention and prevent future breaches. In this instance, the respondents admitted liability after mediation, repaid the underpaid wages with interest, and proactively complied with the regulator's demands for compliance and re-education programs. These factors were taken into account in assessing the penalty.

The court imposed civil penalties on the respondents, reflecting the contraventions but also acknowledging the mitigating factors and the respondents' subsequent compliance and remedial actions.