Former Director still liable to pay penalties with his new wages

FWO First

March 29, 2016

The Director of Sona Peaks Pty Ltd (in liquidation) which traded as an Indian food restaurant in Victoria was recently ordered by the Federal Circuit Court of Australia to pay a total of $26,715 (plus interest) by way of an Attachment of Earnings Order to his wages with his new employer Metro Trains Melbourne Pty Ltd.

Fair Work Ombudsman v Sona Peaks Pty Ltd and David Anderson MLG 933/2013

The Director of Sona Peaks Pty Ltd (in liquidation) (the Company) which traded as an Indian food restaurant in Victoria was recently ordered by the Federal Circuit Court of Australia (FCCA) to pay a total of $26,715 (plus interest) by way of an Attachment of Earnings Order to his wages with his new employer Metro Trains Melbourne Pty Ltd (Metro Trains).

In January 2015, the Fair Work Ombudsman (FWO) was successful in its proceedings against the Company for a penalty to be ordered against the Company and the Director for failing to comply with a Compliance Notice issued by the FWO for the payment of $5,037.34 to the employee for underpayment of wages. At the time, the FCCA imposed a penalty of $3,000.00 on the Director.

Later that same year, the FWO was again successful in proceedings against the Company and the Director for the underpayment of employees a total of $11,201.17. The FCCA ordered the Director to pay a penalty of $23,715 for his involvement in the contraventions of the Fair Work Act 2009 (Cth) (FW Act).

The FWO applied for an “Attachment of Earnings Order” against the Director for the repayment of the two penalties amounts. Earlier this month, the FCCA made the orders sought by the FWO. Accordingly, Metro Trains will be required to deduct $500.00 (together with $3.00 for its administrations fees) from the Director’s wages each pay period as payment for the total penalty.

In the past, the FWO has signalled its intention to hold directors and other relevant personnel who are involved in contraventions, such as underpayments, accountable. This matter serves as a warning to all directors and other relevant personnel that the FWO will pursue directors for outstanding penalties even if they are no longer connected with the business involved in the original contravention.

Information provided in this blog is not legal advice and should not be relied upon as such. Workplace Law does not accept liability for any loss or damage arising from reliance on the content of this blog, or from links on this website to any external website. Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.

$15.3 million in penalties imposed on sushi restaurants and director for serious contraventions

Put your records on

The director and Chief Executive Officer of a group of four sushi restaurants which operated in NSW, the Australian Capital Territory and the Northern Territory was recently ordered to pay $1.6 million for her involvement in contraventions of the Fair Work Act 2009 (Cth) by the Federal Court of Australia.

September 19, 2024

Blogs

FWO secures penalties against bar operator and external accounting firm

Closing time

The Fair Work Act 2009 (Cth) requires employers to keep certain employee records for a period of 7 years. These records are necessary to ensure that employees have been paid their minimum entitlements should an underpayment claim be made.

March 18, 2024

Blogs

Underpaying employer ordered to pay $475,200 in penalties

Pecuniary penalties no longer a matter of degrees

The Federal Court of Australia has issued one of its first penalty decisions since the High Court of Australia’s decision earlier this year of Australian Building and Construction Commissioner v Pattinson [2022] HCA 13.

December 20, 2022

FWC upholds summary dismissal of employee who refused to provide medical information confirming fitness to work

If you refuse you lose

Where there are concerns about an employee’s fitness to work, employers may rely on terms in their employment contract which require the employee to comply with the reasonable and lawful direction to undergo a medical assessment.

June 10, 2025

Blogs

QIRC rejects unfair dismissal claim due to clear evidence of misconduct

Swear by it

Employers have a responsibility to address and manage poor conduct and behaviour which may expose other workers to work health and safety risks in the workplace. Implementation of effective disciplinary processes are vital in curbing such risks that may lead to a poor workplace culture, which may in turn create psychosocial hazards.

June 10, 2025

Blogs

Third maximum term contract role not substantially similar work

Not the same

Amendments to the Fair Work Act 2009 (Cth) limiting the use of fixed term and maximum term contracts prohibit employers from providing employees with successive term contracts, unless an exception applies.

May 27, 2025

Resources: Blogs

FWO First