austlii:cth/FedCFamC2G/2025/892
General information, not legal advice.
FedCFamC2G
2025-06-11
Adam P
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)
VILLAGE BAKERY BALGOWLAH HEIGHTS PTY LTD (ACN 643 812 202)
(a) outstanding wages in the sum of $48,937.85;
(b) the non-payment of superannuation in the sum of $5,174.20; and
(c) compensation for unreasonably requiring the applicant to spend or pay money in the sum of $18,080.60.
Note: The form of the order is subject to the entry in the Court's records.
Note: The Court may vary or set aside a judgment or order to remedy minor typographical or grammatical errors (r 17.05(2)(g) Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 17.05 Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth).
(a) the employment claims made under the Fair Work Act 2009 (Cth) (FW Act), which comprise claims relating to:
(i) the underpayment of wages, with respect to her minimum entitlements under the relevant modern award;
(ii) the non-payment of superannuation, due to the fact the first respondent failed to pay any superannuation at all in respect of the work performed by the applicant;
(iii) compensation for the excessive amount of the applicant's personal money the applicant was required to pay for the direct benefit of the first respondent's bakery business, in contravention of the prohibition on unreasonably requiring an employee to spend or pay money;
(iv) the contravention of other civil remedy provisions, such as the requirement to keep employment records and to provide payslips, in respect of which the applicant seeks orders for the imposition of pecuniary penalties; and
(b) the claim arising at common law, which is made against the second respondent only, and which, insofar as the default judgment application is concerned, relates to the applicant's personal property that has been unlawfully converted or detained by the second respondent.
(a) between 23 August 2021 and 1 October 2021;
(b) between about 8 April 2022 and 4 June 2022; and
(c) between 30 October 2022 and 24 April 2023.
Thank you for your correspondence dated 11 December 2024, in relation to NSW Trustee and Guardian (NSWTG) and the private management of Ms Tayla Maddison Johnson. As the Principal Client Service Officer overseeing Private Management, I am responding to your requests.
...
(c) For the purposes of the Financial Management Order, Mrs McNally has receival of all necessary approvals from the NSW Trustee and Guardian in order to commence and continue the subject proceedings (being proceeding SYG2517/2024 in the Federal Circuit and Family Court of Australia (Division 2)) (the Proceeding) on behalf of Ms Johnson, and no further approval is required.
(a) the affidavit of the applicant, Tayla Maddison Johnson, sworn on 24 February 2025 (Johnson Affidavit);
(b) the affidavit of the applicant's litigation guardian, Amanda McNally, sworn on 24 February 2025 (third McNally Affidavit); and
(c) the affidavit of Aashray Velhal, affirmed on 25 February 2025 (Velhal Affidavit).
13.04 When a party is in default
(1) For the purposes of rule 13.05, an applicant is in default if the applicant fails to:
(a) comply with an order of the Court in the proceeding; or
(b) file and serve a document required under these Rules; or
(c) produce a document as required by Part 14; or
(d) do any act required to be done by these Rules; or
(e) prosecute the proceeding with due diligence.
(2) For the purposes of rule 13.05, a respondent is in default if the respondent:
(a) has not satisfied the applicant's claim; and
(b) fails to:
(i) give an address for service before the time for the respondent to give an address has expired; or
(ii) file a response before the time for the respondent to file a response has expired; or
(iii) comply with an order of the Court in the proceeding; or
(iv) file and serve a document required under these Rules; or
(v) produce a document as required by Part 14; or
(vi) do any act required to be done by these Rules; or
(vii) defend the proceeding with due diligence.
13.05 Orders on default
...
(2) If a respondent is in default, the Court may:
...
(c) if the proceeding was started by an application supported by a statement of claim or the Court has ordered that the proceeding continue on pleadings--give judgment against the respondent for the relief that:
(i) the applicant appears entitled to on the statement of claim; and
(ii) the Court is satisfied it has power to grant; or
(6) The Court may make an order of the kind mentioned in subrule (1), (2) or (4), or any other order, or may give any directions, and specify any consequences for non-compliance with the order, that the Court thinks just.
(a) sections 45 and 323(1) respectively prohibit an employer from breaching a term of a modern award and from failing to pay an employee in full in respect of amounts owing for work performed;
(b) section 325(1) which prohibits an employer from unreasonably requiring an employee to spend or pay money which is for the benefit of the employer or a related party; and
(c) sections 535(1) and 536(1), which relate to the first respondent's obligation to keep employment records and provide pay slips respectively. This issue is relevant to the determination of pecuniary penalties, which will be addressed in a further judgment.
Contravention of ss 45 and 323(1) - Underpayment
(a) opening and closing the bakery;
(b) customer services and cashing orders;
(c) cleaning;
(d) light baking duties;
(e) dealing with creditors of the bakery in the event bills were outstanding;
(f) managing social media accounts;
(g) providing training for junior staff members; and
(h) assisting to manage the shifts and rosters of other co-workers, including arranging for other bakery staff to open and close the store.
(a) For the period in June 2021: ordinary hourly rate of $13.61.
(b) For the period 1 July 2021 - 30 August 2021: ordinary hourly rate of $13.61.
(c) For the period 1 September 2021 - 23 April 2022: ordinary hourly rate of $13.95; Saturday hourly rate of $16.74; Sunday hourly rate of $19.53; public holiday hourly rate of $27.90.
(d) For the period 24 April 2022 - 30 June 2022: ordinary hourly rate of $16.75; Saturday hourly rate of $20.10; Sunday hourly rate of $23.45.
(e) For the period 1 July 2023 - 24 April 2023: ordinary hourly rate of $17.54; Saturday hourly rate of $21.05; Sunday hourly rate of $24.55.
(a) she was paid a total of $1,233 in cash for work she performed during the period 16 June 2021 - 8 August 2021;
(b) between June of 2021 and 24 April 2023, she worked a total of 2,124.25 hours. Within this total number of hours, she worked:
(i) 332.25 hours on Saturdays;
(ii) 292 hours worked on Sundays; and
(iii) 66.5 hours worked on public holidays.
Contravention of ss 45 and 323(1) - Compensation for non-payment of superannuation
(a) $19.39 (being 9.5% of $204.15 in wages earnt for the period in June 2021);
(b) $1,833.68 (being 10% of $18,336.85 in wages earnt for the period between 1 July 2021 and 30 June 2022); and
(c) $3,321.13 (being 10.5% of $31,629.85 in wages earnt for the period between 1 July 2022 and 24 April 2023).
Contravention of s 325(1) - Unreasonable requirement to spend or pay money
325 Unreasonable requirements to spend or pay amount
(1) An employer must not directly or indirectly require an employee to spend, or pay to the employer or another person, an amount of the employee's money or the whole or any part of an amount payable to the employee in relation to the performance of work, if:
(a) the requirement is unreasonable in the circumstances; and
(b) for a payment - the payment is directly or indirectly for the benefit of the employer or a party related to the employer.
Note: This subsection is a civil remedy provision (see Part 4-1).
(a) On 12 November 2022, the applicant was required to pay an amount of $222.70 to Manly Freezers Balgowlah for the benefit of the first respondent.
(b) On 13 November 2022, the applicant was required to pay an amount of $200 in cash to pay the night baker for services provided to the first respondent.
(c) On 13 December 2022, the applicant was required to withdraw an amount of $102.01 from her account for the purpose of balancing the first respondent's till float.
(d) On 23 February 2023, the applicant transferred $5,000 to the second respondent's Commonwealth Bank account. The applicant states the second respondent 'asked to borrow $5,000 because the rent was due'.
(e) On 28 February 2023, the applicant transferred $4,000 to the second respondent's Commonwealth Bank account. The applicant states the second respondent asked to borrow this amount from her and believes it was used to fund the second respondent's holiday.
Involvement in contravention treated in same way as actual contravention
(1) A person who is involved in a contravention of a civil remedy provision is taken to have contravened that provision.
Note: If a person (the involved person) is taken under this subsection to have contravened a civil remedy provision, the involved person's contravention may be a serious contravention (see subsection 557A(5A)). Serious contraventions attract higher maximum penalties (see subsection 539(2)).
(2) A person is involved in a contravention of a civil remedy provision if, and only if, the person:
(a) has aided, abetted, counselled or procured the contravention; or
(b) has induced the contravention, whether by threats or promises or otherwise; or
(c) has been in any way, by act or omission, directly or indirectly, knowingly concerned in or party to the contravention; or
(d) has conspired with others to effect the contravention.
(a) sections 45 and 323(1) in relation to the underpayment of wages; and
(b) section 325 in relation to the applicant's payment of goods and services for the benefit of the first respondent or a party related to it.
Jurisdiction in associated matters
To the extent that the Constitution permits, jurisdiction is conferred on the Federal Circuit and Family Court of Australia (Division 2) in respect of matters not otherwise within its jurisdiction that are associated with matters in which the jurisdiction of the Federal Circuit and Family Court of Australia (Division 2) is invoked.
[T]he "associated jurisdiction" conferred under s 32 of the Federal Court of Australia Act is not concerned with the conferral of jurisdiction to determine non-federal matters that are said to be associated with a federal matter... It is not a synonym for "accrued" jurisdiction. The effect of s 32 is to confer jurisdiction to deal with a federal matter for which jurisdiction has not been conferred upon the Court where it is associated with another federal matter for which jurisdiction has been so conferred.
... Speaking generally it may be said that, given identity of parties, one matter is associated with another if the two matters arise out of substantially the same, or closely connected, facts ...
182. In short, conversion is the intentional performance of an act of dominion inconsistent with the rights of "the true owner" (to use the convenient phrase of Dixon J; I shall no longer distinguish it by quotation marks), even if the intention is merely to exercise dominion and not to deprive the true owner of dominion or property.
183. By contrast, the essence of detinue lies in a refusal to deliver up goods to a person having the immediate right to the possession of those goods. It must be shown that the detention of the goods is wrongful. That is normally shown by request or demand for their return, and a refusal to comply. See J_ohn F Goulding Pty Limited v The Victorian Railways Commissioners_ [1932] HCA 37; (1932) 48 CLR 157 at 167. But it is not necessary that there should be demand and refusal: it will be sufficient, for example, if a bailee of goods has, without permission and in default or breach of duty, parted with possession of the bailed goods so as to incapacitate itself from returning them in accordance with the terms of the bailment: Goulding at 167 again, and at 169.
184. In some circumstances, even though the bailee remains in possession of the goods, it may not be necessary to show demand before detinue can be established. In Baud Corp, NV v Brook (1973) 40 DLR (3d) 418, the Appellate Division of the Supreme Court of Alberta held that where, in an action of detinue, the defence shows clearly that the defendant would have refused to comply with a demand by the plaintiff for possession of the property, the formal making of such a demand is not a necessary part of the plaintiff's cause of action. See McDermid JA at 422-423. His Lordship concluded by expressing his opinion thus:
I am of the opinion where the defence of a defendant shows clearly that if a demand has been made on him for possession of the property, he would have refused delivery, then it should no longer be a defence to an action in detinue that no such demand was made. To require such a formality in circumstances that show it would have been futile is empty of any merit, and is reminiscent of the discarded formalities of the past century.
(a) the respondents to be in default for the purposes of r 13.05 of the Rules;
(b) the first respondent contravened ss 45, 323(1) and 325(1) of the FW Act and that, pursuant to s 550 of the FW Act, the second respondent was involved in those contraventions;
(c) pursuant to s 545(1) of the FW Act, the second respondent is jointly and severally liable to pay the applicant the amounts of compensation owed in relation to the employment claims.
(a) pursuant to s 545(1) of the FW Act, the respondents pay as compensation to the applicant the amount of $72,192.65 comprising:
(i) outstanding wages in the sum of $48,937.85;
(ii) the non-payment of superannuation in the sum of $5,174.20; and
(iii) compensation for unreasonably requiring the applicant to spend or pay money in the sum of $18,080.60.
(b) pursuant to sections 134 and 140 of the FCFCOA Act, the second respondent pay the amount of $18,171.40 to the applicant by way of damages for detinue in respect of the applicant's belongings set out in Schedule 4 to the Statement of Claim.
I certify that the preceding seventy (70) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Papadopoulos.
[1] Statement of Claim filed 9 October 2024 at [3].
[2] Statement of Claim filed 9 October 2024 at [4].
[3] Third McNally Affidavit 4 to 6 at [12] to [16].
[4] Order 4 of orders made on 11 February 2025.
[5] First McNally Affidavit, exhibit AM-1 at 45 to 82.
[6] First McNally Affidavit, exhibit AM-1 at 6 to 8.
[7] Second McNally Affidavit, exhibit AM-1 at 10.
[8] First McNally Affidavit, exhibit AM-1 at 52.
Johnson
Village Bakery Balgowlah Heights Pty Ltd [2025] FedCFamC2G 892
(1981) 148 CLR 457
(2024) 419 ALR 30
(2017) 254 FCR 1
(1932) 48 CLR 157