FWO v Mhoney Pty Ltd

The Federal Circuit and Family Court of Australia heard a dispute between the Fair Work Ombudsman (FWO) and Mhoney Pty Ltd. The FWO alleged that Mhoney Pty Ltd had contravened provisions of the *Fair Work Act 2009* (Cth) by failing to pay an employee, Ms. Kymberley Smith, the minimum wage and other entitlements owed to her under the relevant award and the National Employment Standards. The core of the dispute concerned the alleged underpayment of Ms. Smith's wages and accrued leave entitlements during her employment.

The primary legal issue before the Court was whether Mhoney Pty Ltd had contravened section 45 of the *Fair Work Act 2009* (Cth) by failing to pay Ms. Smith the minimum wage and other entitlements as required by the applicable award and the National Employment Standards. The Court was also required to determine the quantum of any underpayment and whether the contraventions were serious enough to warrant pecuniary penalties.

Judge Burchardt found that Mhoney Pty Ltd had indeed contravened the *Fair Work Act 2009* (Cth) by failing to pay Ms. Smith her minimum wage and accrued leave entitlements. The Court applied the principles of statutory interpretation to the relevant provisions of the Act and the applicable award, concluding that the employer had a clear obligation to pay the employee correctly. The Court considered evidence presented regarding the hours worked by Ms. Smith and the rates of pay she should have received, finding that there was a significant shortfall. The Court also determined that the contraventions were serious, noting the duration of the underpayment and the impact on the employee. Consequently, Mhoney Pty Ltd was ordered to pay Ms. Smith the total amount of $10,998.90 in back pay and was also ordered to pay a pecuniary penalty of $1,500.