Workplace Ombudsman v Saya Cleaning Pty Ltd & Anor (No.2)

The Workplace Ombudsman initiated proceedings against Saya Cleaning Pty Ltd and another respondent in the Federal Magistrates Court, seeking penalties and compensation for breaches of workplace laws. The primary dispute centred on the calculation of interest on the penalties and compensation awarded to the employees. The court was tasked with determining the appropriate interest rate to be applied to the penalties and compensation, given the statutory provisions and the circumstances of the case.

The court examined the relevant statutory provisions, particularly Section 76 of the Federal Magistrates Act 1999 (Cth), which governs interest up to judgment. The court noted that this section does not specify an interest rate and prohibits the compounding of interest. The court also considered analogous provisions in the Federal Court of Australia Act 1976 (Cth) and noted the general practice of adopting the rate of interest applied by the Supreme Court of the relevant state or territory. The court decided against applying the statutory interest rate as it was more appropriate to include modest sums for interest in the orders for recompense of wages, given the lack of information about the employees' circumstances.

In light of the court's reasoning, the penalties imposed on the respondents were ordered to be paid to the Commonwealth, as the proceedings were brought by a public official. Additionally, the first respondent was required to pay the employees specified sums, including interest as provided for in the Workplace Relations Act 1996 (Cth). The second respondent was ordered to pay the applicant’s costs associated with the aborted mediation. The court's decision provided clear guidance on the application of interest rates in similar proceedings and ensured that the employees were compensated appropriately.