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.

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

Blogs

Employer and director ordered to pay penalties for failure to comply with compliance notice

Compliance is a must

The Fair Work Ombudsman (FWO) regularly engages in enforcement action for contraventions of the Fair Work Act 2009 (Cth) (FW Act). Such enforcement action includes issuing infringement and compliance notices, entering into enforceable undertakings or commencing litigation against companies and others involved in contraventions.

November 16, 2021

First Intractable bargaining order made by the Full Bench

How did it end?

Enterprise agreement making under the Fair Work Act 2009 (Cth) requires bargaining representatives to bargain in good faith. Under the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth), the Fair Work Commission was provided with new powers to arbitrate and issue a workplace determination to resolve intractable disputes about terms and conditions of proposed enterprise agreement in circumstances where there are no reasonable prospects of the parties reaching an agreement.

July 9, 2024

Blogs

Federal Court finds employee was not demoted due to his exercise of workplace rights

The final decision

Employees are protected from adverse action because they have exercised, or propose to exercise, the workplace right to make a “complaint” or “inquiry” in relation to their employment within the meaning of section 341(1)(c)(ii) of the Fair Work Act 2009 (Cth).

June 25, 2024

Blogs

Employer successfully rebuts presumption in adverse action claim

Return to sender

An employer has successfully defended an adverse action claim brought by a former employee as the court was satisfied that the employee was not dismissed for a prohibited reason.

June 19, 2024

Resources: Blogs

FWO First