United Voice v MDBR123 Pty Ltd (No 2)

Case

[2015] FCA 76

4 February 2015


Details
AGLC Case Decision Date
United Voice v MDBR123 Pty Ltd (No 2) [2015] FCA 76 [2015] FCA 76 4 February 2015

CaseChat Overview and Summary

United Voice, acting on behalf of Ms Margaret Smith, sought relief against MDBR123 Pty Ltd and its director, the second respondent, for breaches of the Fair Work Act 2009 (Cth). The dispute centred on the termination of Ms Smith's employment, which United Voice claimed was unlawful. The Fair Work Commission referred the matter to the Federal Court for determination of appropriate penalties and compensation.

The court was required to determine the appropriate pecuniary penalty for the breaches of sections 340 and 346 of the Fair Work Act. Additionally, it had to assess the compensation owed to Ms Smith for her loss of past and future earnings, as well as her loss of ability to enjoy paid holidays due to the unlawful termination. The court also needed to decide whether the penalties should be paid to United Voice in recognition of their efforts in pursuing the matter.

In its reasoning, the court held that the breaches were deliberate and flagrant, necessitating a penalty to serve as a deterrent. The court considered the totality principle, the respondent's reasonable offer to settle, and other genuine reasons for adverse action. The penalty amounts were set at $6,000 for the first respondent and $4,000 for the second respondent, with both to be paid to United Voice. The court also awarded Ms Smith $6,870 in compensation, including interest.

The court's orders included the payment of the pecuniary penalties to United Voice, the compensation to Ms Smith, and the vacating of a previous order made on 10 February 2014. There was no order as to costs. The court's decision was made in accordance with Rule 39.32 of the Federal Court Rules 2011.
Details

Areas of Law

  • Employment & Labour Law

Legal Concepts

  • Pecuniary Penalties

  • Compensation

  • Termination of Employment

  • Determination of Penalty Amount

  • Deterrence