Relevant legal principles for compensation
64 Section 545(1) of the FW Act provides that:
(1) The Federal Court or the Federal Circuit and Family 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.
Note 1: For the court's power to make pecuniary penalty orders, see section 546.
Note 2: For limitations on orders in relation to costs, see section 570.
Note 3: The Federal Court and the Federal Circuit and Family Court of Australia (Division 2) may grant injunctions in relation to industrial action under subsections 417(3) and 421(3).
Note 4: There are limitations on orders that can be made in relation to contraventions of subsection 463(1) or (2) (which deals with protected action ballot orders) (see subsection 463(3)).
65 Section 545(2) of the FW Act provides that:
(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.
66 Section 545(1) has a restorative purpose: Shizas v Commissioner of Police (2017) 268 IR 71; [2017] FCA 61 at [209]-[211]. Section 545(2) provides examples of the kinds of orders which may be made under s 545(1). The examples in s 545(2) suggest that the power under s 545(1) is directed to making preventative, remedial and compensatory orders: Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union (2018) 262 CLR 157 at [25] and [104]-[111].
67 Under s 545(2)(b), a necessary condition for the making of an order for compensation is that some loss is suffered because of the contravention: Maritime Union of Australia v Fair Work Ombudsman [2015] FCAFC 120 at [28]. The amount ordered does not have to compensate a person for the full loss suffered: Qantas Airways Ltd v Gama (2008) 167 FCR 537 at [94], Dafallah v Fair Work Commission (2014) 225 FCR 559 at [157]; Patrick Stevedores Holdings Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union (No 4) [2021] FCA 1481 at [24]-[27].
68 Invoking s 545 requires establishing that there is a causal connection between the contraventions and the loss: Australian Licenced Aircraft Engineers Association v International Aviation Service Assistance Pty Ltd (2011) 193 FCR 526 at [423]. This may involve considering what would have or might have occurred had the contraventions not occurred: Maritime Union of Australia v Fair Work Ombudsman at [28]-[30]; Dafallah v Fair Work Commission at [158]; Patrick Stevedores Holdings Pty Limited v Construction, Forestry, Maritime, Mining and Energy Union (No 3) (2021) 304 IR 280; [2021] FCA 348 at [30].
69 A leading case on the issue is Fair Work Ombudsman v Maritime Union of Australia (2015) 252 IR 101; [2015] FCA 814, upheld on appeal in Maritime Union of Australia v Fair Work Ombudsman, where the Court awarded compensation of $20,000 and $40,000 for emotional harm and distress arising out of adverse action contraventions involving the distribution of posters which named and denounced five employees as "scabs". The compensation was awarded even though the applicant failed to prove that the scab posters caused the affected employees any psychological harm by way of adjustment disorder. At first instance, Siopis J found that the compensation was warranted because, "each of the five named employees experienced a continuing fear of physical harm to themselves and their family, and the fear of damage to property": at [78]. The Full Court held that there was no error in the primary judge's exercise of discretion in awarding compensation (at [29]-[34]) and that emotional distress, pain and suffering, the loss of enjoyment of life and like type of losses are capable of constituting loss justifying an order for compensation [104]-[105].
70 The Full Court in James Cook University v Ridd (2020) 278 FCR 566 at [155]-[159] held there was no error in awarding general damages of $90,000 for humiliation, shock and distress even though there was no evidence of psychological injury or any ongoing medical condition.
71 In Fair Work Ombudsman v Foot and Thai Massage Pty Ltd (in liquidation) (No 8) [2024] FCA 483 at [136], the Court held that a lack of expert evidence of mental illness or disorder as a result of contravening conduct was not a bar to the recovery of compensation for non-economic loss. In that matter, the Court ordered compensation to the massage therapists of $30,000 each, which accounted for the emotional harm and distress and the loss of enjoyment of life caused by the various threats they experienced throughout their employment including threats of being sent back to the Philippines or their families being killed in the Philippines.
72 The contraventions by the respondents that Mr Kenwright was the subject of are summarised in the table below:
Verbal Abuse Social Media Abuse Scab Signs
On 13 August 2017, Mr Smyth yelled, "Here comes some leavers, here comes some stinking rats leaving the ship". In or around September or October 2017, Mr Brunker published a list of names on the Facebook page labelled as the "Oaky North Scabs" including the name of Mr Kenwright. On 7 August 2017, Mr Brodsky erected the scab signs on the roadside between Oaky No. 1 Underground Coal Mine and Grasstree Road, containing headings which read "Oaky North Scabs" along with the name of Mr Kenwright.
On 7 September 2017, Mr Smyth yelled, "Good on you champ, give us a wave. You're a fucking moron. Threatening assault against us". On 23 September 2017, Mr Smyth published a post on the Facebook page in which he wrote, "Unfortunately I have to remove the names of those working at Oaky North. The lawyers who are protecting them will take action. Don't want to be called a scab then don't SCAB".
On 11 September 2017, Mr Smyth directed verbal abuse by yelling on a megaphone "How's your missus, Jimmy? Jimmy have you got your balls? Shame on you. Shame on you Jimmy …. How do you sleep at night? Shame on you. Jimmy do you get your balls out of your old girls' handbag?". On 20 October 2017, Dan Farmer published a list of names on the Facebook page described again as "Oaky North Scabs" including the name of Mr Kenwright.
On 24 September 2017, Mr Thompson directed verbal abuse by yelling, "It's not rocket science, how dumb are these fuckers. If you don't want to be called one, don't fucking do it. It's not hard. Poor sensitive little parasites, don't like being called names. Didn't like big old Scabby. Love the Scab. Scabby the rat". Over two days between 23 November 2017 and 27 November 2017, Mr Smyth posted an image of Mr Kenwright superimposed with the text, "KANE KENWRIGHT … SAYS IT'S GOOD WHEN THERE IS A STRIKE BECAUSE HE GETS ALL THE OVERTIME HE WANTS, STILL CROSSING THE OAKY NORTH PICKET LINE".