austlii:cth/FedCFamC2G/2026/468
General information, not legal advice.
FedCFamC2G
2026-03-26
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)
CAPITAL CITY CAFE-BAR PTY LIMITED (ABN 21 663 242 019)
(a) failing to provide the Applicant with a Fair Work Information Statement before or as soon as practicable after her employment commenced; and
(b) failing to provide the Applicant with a Casual Employment Information Statement before or as soon as practicable after her employment commenced.
(a) failing to give pay slips to the Applicant within one working day of paying amounts to the Applicant in relation to the performance of work; and
(b) gave pay slips to the Fair Work Ombudsman on 11 December 2024 which were known to be false and misleading_._
(a) failing to pay casual loading in accordance with cl 11.1 of the Award;
(b) engaging the Applicant to work more than 38 hours per week over the roster cycle contrary to cl 11.2 of the Award;
(c) failing to pay overtime rates in accordance with cl 11.5 of the Award; and
(d) failing to pay the Applicant amounts payable to her in relation to the performance of work in full.
(a) failing to make and keep for 7 years employee records of the kind prescribed by the Fair Work Regulations 2009; and
(b) failing to make employee records available for inspection upon request as required by r 3.42 of the Fair Work Regulations 2009.
(a) $9,390 in respect of the contravention of s 527D of the Fair Work Act 2009 declared in Declaration 1 above; and
(b) $30,610 in respect of the contraventions declared in Declarations 2-7 above.
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 24.04(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 24.04 Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth).
(a) Notwithstanding the late breaking stay as against the First Respondent, the hearing proceeded as against the Second Respondent. (Fair Work Ombudsman v Contracting Solutions Australia Pty Ltd [2013] FCA 7 applied).
(b) Notwithstanding having pleaded some denials in the Amended Response from 12 August 2025, the Second Respondent admitted:
(i) The First Respondent's contraventions; and
(ii) Accessorial liability with respect to the First Respondent's contraventions.
(c) A proposed Minute of Orders by Consent was handed up which included:
(i) Declarations to the effect of the Second Respondent's contraventions of the Fair Work Act 2009 (Cth) by way of his involvement in the First Respondent's contraventions, including sexual harassment; and
(ii) Orders to the effect that the Second Respondent pay to the Applicant:
- (A) $50,000 non-economic compensation for sexual harassment; and
- (B) $9,390 pecuniary penalty for sexual harassment; and
- (C) $30,610 pecuniary penalty for the balance of the contraventions.
(a) Affidavit of Valeria Mejia, 22 May 2025. (The Applicant)
(b) Affidavit of Julian Ramirez Soto, 22 May 2025. (The Applicant's husband)
(c) Affidavit of Giorgio Lucciano Fecci Zambra, 22 May 2025. (Other employee of the First Respondent)
(d) Affidavit of Susan Elizabeth Price, 22 May 2025. (The Applicant's lawyer).
(e) Tony Lane, Forensic Accountant's Report (Expert report, Beacon Advisory Forensic 20 May 2025).
(f) Restaurant Industry Award 2020 MA000119.
(g) ASIC Current & Historical Company Extract - Capital Cafe-Bar Pty Ltd ACN 663 242 019, 17 March 2026.
(h) Affidavit of Rajandeep Kehal, 10 June 2025 - Paragraphs 3-4, 10-13, 16, 21 and Annexures RK1 and RK2. (The Second Respondent)
(a) On behalf of the Applicant dated 12 March 2026 (being prior to the appointment of a Liquidator to the First Respondent and prior to the Second Respondent's additional admissions on the date of trial); and
(b) On behalf of the Second Respondent dated 18 March 2026 (being prior to the Second Respondent abandoning his case with respect to the contraventions not already denied and of accessorial liability).
34. Just before the end of my shift, at around 14:40pm I went into the kitchen to wash the dishes after l had finished cleaning the front of the cafe. The chef, Mr Giorgio Fecci Zambra and Raj were in the kitchen. We were the last 3 staff in the cafe.
35. While I was standing at the sink washing the dishes, Raj asked Giorgio to take the bins out. This surprised me, as I was usually responsible for taking the bins out. I heard Giorgio agree to take the bins and then leave the kitchen with the rubbish.
36. Raj then came up behind me while I was washing dishes at the sink and wrapped both of his arms me, embracing me in a hug from behind in a way which constricted my upper arms from moving. The front of his body was pressed against the back of my body, pinning me to the sink. He had his wallet open in his left hand; his right arm was wrapped around my stomach with his hand on my waist, his face was close to mine. He then waved the wallet in front of me and said "Take the money, take some." I was shocked and scared, and I said "No."
37. His face was close to mine and I felt him press closer to me; he was so close I could feel his breath. I was so scared I felt frozen. I thought that he would do something worse, like raping me if I did not take the money. I thought he was trying to force me to take the money.
38. l saw multiple $100 notes in his wallet and a $50 note. I thought I had to do something to get him away from me. I lifted my hand from the sink and grabbed the smallest note, the $50 note from his wallet, with my left hand. Using my right arm, I pushed his right arm off of me, sweeping it back behind me and forcing him to take a step back. As I did so, I stepped back from him and was leaning away from the sink and towards the back wall of the kitchen. He was now to the side of me rather than behind me.
39. He then leant forward and kissed me on the lips. I was so shocked that I stood very still with my arms by my side and didn't say anything.
40. After the kiss ended, I heard a noise I thought it was Giorgio re-entering the cafe. I turned back to the sink and started to wash the dishes again.
41. As I turned back to the sink, I saw Giorgio walking back into the kitchen. Giorgio walked past me and Raj. I recall that he had been gone around 5 minutes and did not witness the hug, or the kiss on the lips. Raj then said to Giorgio words to the effect of "You can go home now, she can finish this. "
42. I was terrified that if Giorgio left, something worse would happen to me. I said to Giorgio in Spanish, "Don't leave me. "Giorgio replied in Spanish "No, I am going to leave you never."
43. I quickly finished up the remaining tasks and left the cafe with Giorgio around ten minutes later. I recall saying words to the effect of "Bye'' to Raj as I left the cafe. I don't remember where he was standing. I was too scared to confront him about what he had done, but I knew I would never go back there.
S125 FW Act
r. 2.02 FW Regs
Failure to provide Fair Work Information Statement
Failure to provide Casual Employment Information Statement
Failure to ensure copies of Award and NES available
Failure to provide pay slips within 1 working day
Failure to pay in accordance with Award - Failure to pay correct casual loading
Failure to pay in accordance with Award - Engaging casual to work more than 38 hours/wk in roster cycle
Failure to pay in accordance with Award - Failure to pay overtime rates for hours worked in excess of 38 hours/week
Failure to make superannuation contributions to superannuation fund
Failure to make employee records available upon request
Failure to provide Fair Work Information Statement
Failure to provide Casual Employment Information Statement
Failure to ensure copies of Award and NES available
Failure to provide pay slips within one working day
Failure to pay in accordance with Award - Failure to pay correct casual loading
Failure to pay in accordance with Award - Engaging casual to work more than 38 hours/wk in roster cycle
Failure to pay in accordance with Award - Failure to pay overtime rates for hours worked in excess of 38 hours/week
Failure to make superannuation contributions to superannuation fund
Failure to make employee records available upon request
(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.
(2) Without limiting subsection (1), orders the Federal Court or Federal Circuit and Family Court of Australia (Division 2) may make include the following:
...
(b) an order awarding compensation for loss that a person has suffered because of the contravention;
...
(4) A court may make an order under this section:
(a) on its own initiative, during proceedings before the court; or
(b) on application.
(1) The Federal Court, the Federal Circuit and Family Court of Australia (Division 2) or an eligible State or Territory court may, on application, order a person to pay a pecuniary penalty that the court considers is appropriate if the court is satisfied that the person has contravened a civil remedy provision.
(2) Subject to this section, the pecuniary penalty must not be more than:
(a) if the person is an individual--the maximum number of penalty units referred to in the relevant item in column 4 of the table in subsection 539(2); or
(b) if the person is a body corporate--5 times the maximum number of penalty units referred to in the relevant item in column 4 of the table in subsection 539(2).
...
(3) The court may order that the pecuniary penalty, or a part of the penalty, be paid to:
...
(c) a particular person.
...
(5) To avoid doubt, a court may make a pecuniary penalty order in addition to one or more orders under section 545.
Section 550 - 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.
(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.
(1) For the purposes of this Part, 2 or more contraventions of a civil remedy provision referred to in subsection (2) are, subject to subsection (3), taken to constitute a single contravention if:
(a) the contraventions are committed by the same person; and
(b) the contraventions arose out of a course of conduct by the person.
(a) In order to aid, abet, counsel or procure the relevant contravention, the person must intentionally participate in the contravention with the requisite intention - actual knowledge of the 'essential matters' which go to make up the events, whether or not the person knows that those matters amount to a contravention to the Act; and
(b) In order to be 'knowingly concerned' the person must have engaged in some act or conduct which 'implicates or involves him or her' in the contravention so that there be a 'practical connection between' the person and the contravention.
Failure to provide Fair Work Information Statement
Failure to provide Casual Employment Information Statement
Failure to ensure copies of Award and NES available
Failure to provide pay slips within one working day
Failure to pay in accordance with Award - Failure to pay correct casual loading
Failure to pay in accordance with Award - Engaging casual to work more than 38 hours/wk in roster cycle
Failure to pay in accordance with Award - Failure to pay overtime rates for hours worked in excess of 38 hours/week
Failure to make superannuation contributions to superannuation fund
Failure to make employee records available upon request
Balance between deterrence and oppressive severity
(a) The Applicant was a vulnerable person on a number of accounts all of which I accept were easily observed if not expressly known by Mr Kehal. The Applicant was relatively young, female, a migrant, of limited financial resources and of limited social supports.
(b) Mr Kehal was in a position of authority. Further, he sought to leverage that authority in combination with the Applicant's vulnerabilities, particularly by holding out a financial gain to the Applicant.
(c) The contravention was a single incident. There is no evidence that there was any prior inappropriate behaviour, targeting or a permissive culture. There is no evidence of previous contraventions.
(d) Mr Kehal repeatedly expressed remorse to the Applicant the day after the incident and again two days after the incident. I do not accept that those expressions of remorse are indicative of acceptance of responsibility. I find that they were motivated by Mr Kehal wanting the incident to be undisclosed, avoidance of consequences, not wanting his wife to find out and the inconvenience of suddenly being short staffed.
(e) There is no evidence as to Mr Kehal's personal circumstances. The only inference available on the evidence is that he engaged in the behaviour for personal gratification.
(f) Initially, Mr Kehal denied the allegation which required the Applicant to prepare affidavit evidence. By his Amended Response in August 2025, he predominantly admitted to the allegation. Not until the day of the hearing did he make full admissions. The Applicant was spared the experience of being cross-examined.
(a) Mr Kehal's wife employed, inducted and partially instructed the Applicant. I do not find that Mr Kehal's culpability is diminished because of that. There is no evidence that Mr Kehal had instructed or believed that his wife was meeting the First Respondent's obligations under the legislation. Ultimately, Mr Kehal was the only director and thereby the controlling mind of the First Respondent company. The evidence is indicative of a comprehensive disregard of obligations as a national system employer.
(b) The contravention period ran from the Applicant's commencement of employment on 6 May 2024 until at least the end of her employment on 29 July 2024. Arguably, on some contraventions such as the failure to keep records, they were ongoing until the liquidator was appointed on 17 March 2026.
(c) The contravention for giving false or misleading payslips attracts a higher penalty where it is conduct that inherently was intended to avoid penalty by deception and therefore is of higher culpability. Whereas the balance of the conventions fall within the comprehensive disregard for obligations under the Act previously referred to.
(d) The First Respondent is in liquidation from which I infer that it is insolvent, no longer trading for the benefit of its shareholders, is not a financial resource for Mr Kehal and the underpayments to the Applicant and superannuation contributions are unlikely to be paid.
(e) There is no evidence of previous contraventions.
(f) There is no evidence as to Mr Kehal's personal circumstances. There is no evidence as to the First Respondent's financial circumstances other than it is now in liquidation. The only inference available is that the First Respondent's and Mr Kehal's contraventions were for financial gain.
(g) Mr Kehal initially denied the allegations which required the Applicant to marshal evidence and prepare for hearing. By his Amended Response in August 2025, he partially admitted to the allegations. On the day of the hearing he made full admissions.
(a) The proposed amounts of the penalties are sufficient to serve the objects of both specific and general deterrence.
(b) The Second Respondent brought no evidence with respect to his financial circumstances on which an assessment of severity could be made.
(a) The Second Respondent has contravened a civil remedy provision; and
(b) The order awarding compensation is for loss that the Applicant has suffered because of the contravention; and
(c) The Court considers the order appropriate.
34. In this case, the relevant facts are that the conduct of the Second Respondent caused the Applicant significant distress and humiliation. She resigned from her employment, experienced trouble sleeping, ruminated on the experience, cried and felt unsafe in her home. She also attended her General Practitioner to discuss the impacts on her mental health and sought support from friends and family. While she has gone on to find new employment, she was unemployed for a period and without income as a new migrant.
24. It is accepted that an act of sexual harassment took place, and that the Applicant otherwise would have suffered a degree of hurt, humiliation and anguish connected to both the alleged spoken words and physical acts of the Second Respondent.
25. In this case, the Applicant has sustained an injury, however the level of that injury is to be measured in context that:
a) the Applicant only attended a GP consult but did not receive psychological intervention and did not otherwise appear to have returned to the GP for further consultation;
...
d) the Applicant otherwise commenced employment with a new company twenty-two days after her last shift with the First Respondent and appears to have maintained continuing employment.
31. In respect of non-economic loss Richardson v Oracle[2] established that when determining compensation consideration needs to be given to the "general standards prevailing in the community".[3] Consequently, courts have awarded more significant awards of damages in sexual harassment cases, noting that there is a growing "acceptance and an understanding of the pernicious nature of sexual harassment."[4] In recent years, significant awards of damages of up to $175 000 have been made in cases brought under the Sex Discrimination Act 1984 (Cth) and relevant state and territory anti-discrimination legislation.[5]
32. There is yet to be a published decision for a sexual harassment dispute brought under s527D of the FW Act. The new dispute mechanism is designed to complement the anti-discrimination jurisdiction, enabling people who experience sexual harassment in connection with work an alternate pathway to initiate civil proceedings and therefore we submit that any award of damages should be in line with similar cases in the anti-discrimination jurisdiction.[6]
33. Recently in Magar v Khan [2025] FCA 874 Justice Bromwich acknowledged that "[p]rior awards of damages are not precedents, but can act as yardsticks to assist in arriving at an appropriate measure of damages."[7] Similarly, Justice Bromberg explained in the case of Ewin v Vergara (No 3) [2013] FCA 1311 "[t]he assessment of general damages in compensation for pain and suffering, for loss of amenity or enjoyment of life and for other intangibles is not a science and by its nature is not readily capable of arithmetic calculation....Each case will be determined by its own facts."[8] Sexual harassment is also not mitigated by the fact that it occurred on a single occasion. In the case of Green v Queensland, Brooker & Keating [2017] QCAT 8 the Applicant was awarded $70 000 after he was subjected to a single incident of sexual harassment.[9]
I certify that the preceding sixty-five (65) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Mansfield.
[1] Fair Work Ombudsman v Sushi Bay Pty Ltd (in liq) (No.3) [2024] FCA 869, at [15].
[2] Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82; 312 ALR 285 (Kenny J).
[4] Hill v Hughes [2019] FCCA 1267 [234] (Vasta J).
[5] See for example Magar v Khan [2025] FCA 874;Vitality Works Australia Pty Ltd v Yelda (No 2) [2021] NSWCA 147; Hill v Hughes t/as Beesley and Hughes Lawyers [2019] FCCA 1267; Oliver v Bassari (Human Rights) [2022] VCAT 329; Kumari v Bever Pty Ltd Human Rights [2023] VCAT 21.
[6] Revised Explanatory Memorandum of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 [12]-[14].
[7] Magar v Khan [2025] FCA 874 [199] (Bromwich J).
[8] Ewin v Vergara (No 3) (2013) FCA 1311 [658] (Bromberg J).
[9] Green v Queensland, Brooker & Keating [2017] QCAT 8.
Mejia
Capital City Cafe-Bar [2026] FedCFamC2G 468
(2014) 221 FCR 153