Scotto v Scala Bros Pty Ltd and Anor (No.2)

In *Scotto v Scala Bros Pty Ltd and Anor (No.2)*, Judge Cameron of the Federal Circuit Court of Australia was required to determine the quantum of compensation and civil pecuniary penalties payable by the respondents, Scala Bros Pty Ltd and Giuseppina Bossi, to the applicant, Paul Scotto. This followed an earlier judgment where the Court found that Scala Bros had breached various workplace relations legislation, including the *Workplace Relations Act 1996*, the *Fair Work (Transitional Provisions and Consequential Amendments) Act 2009*, the *Fair Work Act 2009*, and the *Long Service Leave Act 1955* (NSW), by failing to pay Mr Scotto his full entitlements. The Court also found that Mrs Bossi, a director of Scala Bros, was knowingly involved in many of these contraventions during her period of proprietorship.

The Court was tasked with determining several specific issues regarding compensation, including whether Mr Scotto worked on Easter Saturdays, which days constituted public holidays for the purpose of penalty rates, and the correct rate of pay for calculating accrued annual and long service leave entitlements. Furthermore, the Court had to assess the appropriate civil pecuniary penalties for the contraventions by both Scala Bros and Mrs Bossi, considering factors such as the nature and extent of the conduct, the circumstances in which it occurred, the loss sustained, the deliberateness of the breaches, the size of the business, and the need for deterrence. The Court also considered the parties' respective applications for costs.

In its reasoning, the Court found that Mr Scotto was entitled to penalty rates for working on Easter Saturdays between 2005 and 2010, and that his accrued annual and long service leave entitlements should be calculated based on his final weekly wage of $989 gross. Regarding penalties, the Court determined that Scala Bros had committed nine contraventions and imposed a total penalty of $31,500. For Mrs Bossi, the Court found seven contraventions and imposed a total penalty of $6,000, which was suspended for two years, contingent on her not committing further contraventions of the *Fair Work Act 2009*. The Court also ordered that the respondents pay 30% of the applicant's costs.