austlii:cth/FedCFamC2G/2025/1516
General information, not legal advice.
FedCFamC2G
2025-09-15
Original judgment source is linked above.
THE COURT DECLARES THAT:
The Second Respondent contravened section 716(5) of the Fair Work Act 2009 (Cth) by failing to comply with the compliance notice issued on 6 April 2022.
The First Respondent contravened section 716(5) of the Fair Work Act 2009 (Cth) by failing to comply with the compliance notice issued on 2 December 2022.
The First Respondent contravened section 716(5) of the Fair Work Act 2009 (Cth) by failing to comply with the compliance notice issued on 1 March 2023.
The Second Respondent was involved, within the meaning of section 550(2) of the Fair Work Act 2009 (Cth), in the First Respondent's contravention of 716(5) of the Fair Work Act 2009 (Cth) declared at paragraph 2 above.
The Second Respondent was involved, within the meaning of section 550(2) of the Fair Work Act 2009 (Cth), in the First Respondent's contravention of 716(5) of the Fair Work Act 2009 (Cth) declared at paragraph 3 above.
THE COURT ORDERS THAT:
- The matter be listed for a penalty hearing before Judge Symons at the Federal Circuit and Family Court of Australia in Melbourne on 11 December 2024 at 10:00am on an estimate of half a day.
- The Applicant file and serve evidence and submissions on the question of penalty and any further relief sought by no later than 3 October 2024.
- The Respondents file and serve evidence and responsive submissions by no later than 21 November 2024.
- The Applicant file and serve any reply material by no later than 5 December 2024.
(a) Mr Oliver employed Mr Dooney as a full-time weekly hire employee from 1 July 2021 to 27 August 2021;
(b) the Building and Construction General On-site Award 2020 (2020 Award) covered and applied to Mr Oliver in respect of the employment of Mr Dooney;
(c) from 1 July 2021 to 27 August 2021, Mr Dooney was classified under the 2020 Award as a "level 3 carpenter".
(d) At the end of this employment period, Mr Oliver failed to pay Mr Dooney the annual leave entitlements which he had accrued but had not taken.
(a) LROC employed Mr Housden as a full-time weekly hire employee from 4 December 2020 to 15 January 2021;
(b) The Building and Construction General On-site Award 2010 (2010 Award) covered and applied to LROC in respect of the employment of Mr Housden;
(c) from 4 December 2020 to 15 January 2021, Mr Housden was classified under the 2010 Award as a "level 3 construction worker";
(d) LROC failed to pay Mr Housden:
(i) the applicable minimum wage for ordinary hours worked;
(ii) the relevant fares and travel allowance expenses;
(iii) the relevant overtime rate for the first two hours of overtime worked on a weekday;
(iv) the relevant overtime rate for overtime worked on a weekday after two hours of overtime;
(v) the relevant overtime rate for the first two hours of overtime worked before 12pm on a Saturday;
(vi) the relevant overtime rate for overtime worked before 12pm on a Saturday after two hours of overtime;
(vii) the relevant overtime rate for overtime worked after 12pm on a Saturday; and
(viii) any accrued, but untaken, annual leave as well as annual leave loading when his employment ended.
(a) during the period 13 December 2018 to 8 April 2022 LROC employed Mr Van Der Meer as a full-time weekly hire;
(b) during the period 13 December 2018 to 8 April 2022 LROC employed Mr Guanizo as a full-time weekly hire;
(c) the 2020 Award covered and applied to LROC in respect of the employment of Mr Van Der Meer and Mr Guanizo;
(d) from 13 December 2018 to 8 April 2022, Mr Van Der Meer was classified as a construction worker Level 3 and a full-time weekly hire employee within the meaning of clause 10 of the 2020 Award;
(e) from 13 December 2018 to 8 April 2022, Mr Guanizo was first classified as a construction worker Level 1a, before progressing to a Level 1b worker after 3 months in the industry. During this period, Mr Guanizo was classified as a full-time weekly hire employee within the meaning of clause 10 of the 2020 Award;
(f) LROC failed to pay Mr Van Der Meer:
(i) the applicable ordinary hourly rate for ordinary hours worked;
(ii) the relevant overtime rate for the first two hours of overtime worked on a weekday;
(iii) the relevant overtime rate for overtime worked on a weekday after two hours of overtime;
(iv) for annual leave taken during his employment, plus annual leave loading;
(v) for personal/carer's leave taken during his employment;
(vi) for ordinary hours he was absent on a public holiday; and
(vii) any accrued, but untaken, annual leave as well as annual leave loading when his employment ended;
(g) LROC failed to pay Mr Guanizo:
(i) the applicable ordinary hourly rate for ordinary hours worked;
(ii) the relevant overtime rate for the first two hours of overtime worked on a weekday;
(iii) the relevant overtime rate for overtime worked on a weekday after two hours of overtime;
(iv) for annual leave taken during his employment, plus annual leave loading;
(v) for personal/carer's leave taken during his employment;
(vi) for ordinary hours he was absent on a public holiday; and
(vii) any accrued, but untaken, annual leave as well as annual leave loading when his employment ended.
Nature, extent and circumstances of the contraventions
"...the 'loss' that is most relevant in this case is that which relates to the frustration and stultification of the statutory purpose behind s 716 of the Act. As noted above, the purpose of s 716 is to provide an alternative to litigation. That is, it is designed to prevent litigation. Litigation is timely and expensive. It is also not controversial that Court resources are limited and this Court actively promotes alternative resolution methods in order to reduce unnecessary expenditure. Here, that purpose has been systematically undermined".
(a) $2,664 to $3,330 (40% to 50% of the maximum) be imposed on Mr Oliver in respect of his contravention of the First Compliance Notice;
(b) $24,750 to $28,875 (60% to 70% of the maximum) be imposed on LROC in respect of its contravention of the Second Compliance Notice;
(c) $4,950 to $5,775 (60% to 70% of the maximum) be imposed on Mr Oliver in respect of his involvement in LROC's contravention of the Second Compliance Notice;
(d) $28,875 to $33,000 (70% to 80% of the maximum) be imposed on LROC in respect of its contravention of the Third Compliance Notice; and
(e) $5,775 to $6,600 (70% to 80% of the maximum) be imposed on Mr Oliver in respect of his involvement in LROC's contravention of the Third Compliance Notice.
I am writing to follow up with you in order to provide support with the attached Compliance Notice (CN) recently issued to OLIVER, LACHLAN ROBERT
The matter is regarding payment of monies owing to the employee named on the Compliance Notice, Mark Dooney
Please call me or let me know a suitable time so I can assist you with;
Understanding the contents of the Compliance Notice
Understanding what steps you now need to take and by when
Answering any questions you may have and provide any other assistance
There are a number of actions the Compliance Notice requires of the business, this one is pretty simple in terms of the Annual leave contraventions in the CN. I want to help you avoid any risk of you not meeting all of these requirements by their due date and am happy to work with a third party such as a bookkeeper or an accountant if necessary.
The penalties for which the FWO agitated were, by some margin, wholly outside the range of sentencing options that were properly available. I would not contemplate a penalty anywhere close to 80% of the maximum available for cooperative (or at least partly cooperative) first-time contraveners whose conduct, although wrong, involved a small sum, the non-payment of which was voluntarily corrected and not wholly without extenuating explanation.
Involvement in LROC's contravention of the Second Compliance Notice
Involvement in LROC's contravention of the Third Compliance Notice
(1) Fair Work Ombudsman v ABMENG Pty Ltd (No 2) [2024] FedCFamC2G 1287 at [11], [37]-[38] (Judge Ladhams) in which the approach adopted in Pure Telecom was adopted, noting that the parties the subject of the compliance notice in question consented to orders requiring the amounts outstanding to the employees to be paid;
(2) three judgments where orders were made (pursuant to s 546(3) of the FW Act) for the payment of the pecuniary penalty to an employee the subject of a compliance notice issued under s 717: Fair Work Ombudsman v Territory Tough Pty Ltd [2024] FedCFamC2G 743 at [61]- [71] (Judge Liveris), Fair Work Ombudsman v Annangrove Road Pty Ltd (in liq) (No 2) [2024] FedCFamC2G 854 at [37]- [41](Judge Laing) and Fair Work Ombudsman v Double Hao International Pty Ltd (No 2) [2024] FedCFamC2G 943 at [10]- [17] (Judge Forbes);
(3) Fair Work Ombudsman v Clark Projects Pty Ltd [2025] FedCFamC2G 24, in which Judge Doust accepted that it was appropriate for the Court to make orders for the payment of compensation in circumstances (at [69]), where:
(a) the respondent had been on notice since the commencement of the proceeding of the quantum of the compensation sought by the applicant, and the basis of the calculation of that compensation;
(b) the respondent had an opportunity to be heard as to the making of any such orders and the quantum of any compensation to be ordered; and
(c) the respondent had declined to appear to defend the proceeding; and
(d) Judge Doust respectfully expressed her disagreement with the judgments in Carers Portland, Cobra Security and Taing (at [58]-[59], [63] and [67])
(1) s 716 of the FW Act applies where an inspector has formed a reasonable belief that a person has contravened certain provisions.[25]
(2) pursuant to s 716(2)(a) of the FW Act, a compliance notice can require a person to "take specified action to remedy the direct effects of the contravention".
(3) where an inspector forms a reasonable belief that a person has contravened a relevant provision by failing to pay to an employee the monetary entitlement provided by that provision, the "direct effects of the contravention" are that the employee has not received an amount which should have been paid to them. The actions required by the compliance notice to "remedy the direct effect of the contravention" are the calculation and payment of the monetary entitlement;
(4) in the present case, FWI Semmler and FWI Chin formed separate reasonable beliefs that LROC and Mr Oliver contravened provisions of the 2010 Award, 2020 Award, and the FW Act. FWI Semmler and FWI Chin issued the Compliance Notices in respect of those contraventions, requiring LROC and Mr Oliver to:
(a) calculate the amount that would have been payable to the Employees in respect of the entitlements under the 2010 Award, 2020 Award, and the FW Act; and
(b) pay the difference between the amounts calculated and the amounts already paid to the Employees;
(5) consistent with the reasoning in Pure Telecom at [60], the issuing of each Compliance Notice, formed on the respective reasonable belief in each case, gave rise to a secondary obligation to pay the amounts owing. FWI Semmler and FWI Chen's reasonable belief in each case was not the subject of any review under s 717 and has not been challenged in this proceeding. Further, in respect of the First Compliance Notice, FWI Semmler's reasonable belief that there was a contravention is in fact supported by Mr Oliver's provision of calculations showing that an amount was owing;
(6) in determining whether to exercise the discretion conferred by s 545(1) of the FW Act to make an order awarding compensation for the loss suffered (as a result of the contravention of s 716(5) of the FW At by failing to comply with the notice issued under s 716(2)), it is appropriate to have regard to what is reasonable in the circumstances, and to what would have been likely to occur had the contravention of s 716(5) not occurred (referring to Dafallah v Fair Work Commission [2014] FCA 328 at [158]). In a money case such as this one, if the person to whom notice is given under s 716(2) complies with the notice, payment of the monetary entitlement is made to the employees. However, as discussed by Judge Cameron in Pure Telecom at [62], if the person to whom notice is given under s 716(2) fails to comply with the notice, the critical failure is that the monetary entitlement is not paid to the employees. The affected employees clearly suffer the loss of the entitlement, and it is appropriate for the FWO to seek compensation for it. That loss arises not from the failure to comply with the original provisions, but the failure to comply with each Compliance Notice.
"remedies which meet the circumstances of any given contravention, taking into account the range of parties who may have brought proceedings in relation to the contravention, and the actions which might in any given circumstance be required to remedy the contravention, to ensure it does not occur again".
If a respondent is in default, the Court may:
...
(c) if the proceeding was started by an originating application supported by a statement of claim, or an alternative accompanying document referred to in rule 8.04, or if the Court has ordered that the proceeding continue on pleadings - give judgment against the respondent for the relief claimed in the statement of claim or alternative accompanying document to which the Court is satisfied that the applicant is entitled; or
...
[10] The condition in rule 5.23(c) of the Rules, that the Court be satisfied that the applicant is entitled to relief before judgment is entered against the respondent, does not require proof by way of evidence of the applicant's claim, although evidence may be adduced: Australian Competition and Consumer Commission v Dataline Net AU Pty Ltd (2006) 236 ALR 665, [2006] FCA 1427 at [44]; Yeo v Damos Earthmoving Pty Ltd, Re Beachwood Developments Pty Ltd (in liq) [2011] FCA 1129 at [9].
[11] However, the applicant must demonstrate, on the face of the statement of claim:
- a claim for relief sought; and
- that the court has jurisdiction to grant that relief.
See Luna Park Sydney Pty Ltd v Bose [2006] FCA 94 at [20].
[12] An applicant will appear to be entitled to the relief sought in the statement of claim if each element of the relevant civil wrong is properly and discretely pleaded: Macquarie Bank Ltd v Seagle [2005] FCA 1239; (2005) 146 FCR 400 at [24]; Macquarie Bank Ltd v Seagle (2008) 79 IPR 7, [2008] FCA 1417 at [20].
[13] The Court may permit recourse to further limited evidence but cannot admit evidence that would alter the case as pleaded: Speedo Holdings BV v Evans (No 2) [2011] FCA 1227 at [25] ("Speedo").
[14] If an order for relief under rule 5.23(2)(c) is made, it gives the applicant a special privilege to gain judgment without proof of the applicant's claim - a severe disadvantage to the respondent. As a result, the rules governing default judgment are strictly construed and the discretion must be exercised cautiously: Clayton v Thomas C Denton & Co Pty Ltd [1972] VicRp 5; [1972] VR 46 at 49; Speedo at [20].
(a) pursuant to s 545(1) of the FW Act, Mr Oliver take the following steps to remedy the direct effects of his non-compliance with the First Compliance Notice within 28 days from the date of this order:
(i) pay $855.38 to Mr Dooney; and
(ii) provide to the FWO proof that the amount set out in [the foregoing subparagraph] has been rectified;
(b) pursuant to s 545(1) of the FW Act, LROC Builders take the following steps to remedy the direct effects of its non-compliance with the Second Compliance Notice within 28 days from the date of this order:
(c) pursuant to s 545(1) of the FW Act, LROC Builders take the following steps to remedy the direct effects of its non-compliance with the Third Compliance Notice within 28 days from the date of this order:
(i) pay $25,218.73 to Mr Van Der Meer;
(ii) pay $2,350.94 to Mr Van Der Meer's nominated superannuation fund;
(iii) pay $16,805.88 to Mr Guanizo;
(iv) pay $2,002.75 to Mr Guanizo's nominated superannuation fund;
(v) provide to the FWO proof that the amounts set out in the [foregoing subparagraphs] have been rectified.
545 Orders that can be made by particular courts
Federal Court and Federal Circuit and Family Court of Australia (Division 2)
(1) The Federal Court or the Federal Circuit Court of Australia (Division 2) may make any order the court considers appropriate if the court is satisfied that a person has contravened, or proposes to contravene, a civil remedy provision.
(2) Without limiting subsection (1), orders the Federal Court or Federal Circuit and Family Court of Australia (Division 2) may make include the following:
(a) an order granting an injunction, or interim injunction, to prevent, stop or remedy the effects of a contravention;
(b) an order awarding compensation for loss that a person has suffered because of the contravention;
(c) an order for reinstatement of a person;
(d) an order requiring a person to comply, either wholly or partly, with a notice (other than an infringement notice) given to the person by an inspector or the Fair Work Ombudsman.
...
I certify that the preceding one hundred and five (105) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Symons.
[1] Statement of Claim filed 7 September 2023 (SOC), [5].
[3] Annexure AS-7 of the affidavit of FWI Andrew Semmler dated 1 October 2024 (first Semmler affidavit).
[7] Australian Building and Construction Commission v Pattinson [2022] HCA 13; (2022) 274 CLR 450 (Pattinson), [10].
[11] Applicant's Outline of Submissions filed 3 October 2024 (October submissions), [25].
[12] Fair Work Act 2009 (Cth), ss 557(1)-(2).
[13] Fair Work Ombudsman v Yogurberry World Square Pty Ltd [2016] FCA 1290, [27].
[14] Pattinson, [43] citing The Commonwealth v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 258 CLR 482 at [110].
[16] Annexure JC-16 of the first Chin affidavit.
[17] First Semmler affidavit, [19], [20]; Annexure AS-10.
[22] Second Semmler affidavit, [3], [5]-[6], [8], [10]-[11].
[24] Annexure AS-11 of the second Semmler affidavit.
[25] Fair Work Act 2009 (Cth), s 716(1).
[30] Explanatory Memorandum, Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 (Cth).
Fair Work Ombudsman
LROC Builders Pty Ltd [2025] FedCFamC2G 1516
Australian Building and Construction Commission v Pattinson (2022) 274 CLR 450; [2022] HCA 13
Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate (2015) 258 CLR 482; [2015] HCA 46
Dafallah v Fair Work Commission [2014] [2014] FCA 328; (2014) 225 FCR 559; FCA 328
Fair Work Ombudsman v Soma Kitchen Pty Ltd & Anor (No. 2) [2020] FCCA 2583
Fair Work Ombudsman v Yogurberry World Square Pty Ltd [2016] FCA 1290
Kidd v Kwek (No 2) [2024] FCA 194
Patrick Stevedores Holdings Pty Limited v Construction, Forestry, Maritime, Mining and Energy Union (No 4) [2021] FCA 1481
Trade Practices Commission v CSR Ltd (1991) ATPR 41-076, [1990] FCA 521
Yes Insurance Group Pty Ltd v Fair Work Ombudsman [2024] FCA 1366
(2022) 274 CLR 450
(2015) 258 CLR 482
(2014) 225 FCR 559
(1990) 27 FCR 388
(2006) 236 ALR 665
(2005) 146 FCR 400
(2008) 79 IPR 7