Australian Building & Construction Commissioner v Inner Strength Steel Fixing Pty Ltd [2012] FCA 499

Australian Building & Construction Commissioner v Inner Strength Steel Fixing Pty Ltd [2012] FCA 499

The admitted sham contracting contraventions were deliberate, involved the sole director and a course of conduct over about two years, deprived workers of employee entitlements and financially benefited Inner Strength, but the respondents admitted liability, cooperated, took some corrective action, obtained advice to reduce future risk, and had no prior relevant contraventions. Having regard to proportionality, deterrence, the totality principle and the principles governing agreed penalties, the proposed penalties were within the permissible range and should be imposed.

Jurisdiction
Australia
Judgment Date
17 May 2012
Procedural Posture
Industrial Law Proceeding for Pecuniary Penalties for Admitted Sham Contracting Contraventions / Judgment on Agreed Facts and Admissions, Dealt With on the Papers, With Agreed Penalties
Outcome
Orders made imposing agreed pecuniary penalties on the respondents, payable to the Commonwealth, with no order as to costs.
Legal Topics
['sham Contracting' 'pecuniary Penalties' 'workplace Relations Act 1996 (cth)' 'fair Work Act 2009 (cth)' 'agreed Penalties' 'deterrence' 'totality Principle']
['industrial Law' 'employment Law'] ['sham Contracting' 'pecuniary Penalties' 'workplace Relations Act 1996 (cth)' 'fair Work Act 2009 (cth)' 'agreed Penalties' 'deterrence' 'totality Principle']

Case Brief

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Procedural Posture

Industrial Law Proceeding for Pecuniary Penalties for Admitted Sham Contracting Contraventions / Judgment on Agreed Facts and Admissions, Dealt With on the Papers, With Agreed Penalties

Legal Issues

  1. 1 ['Whether pecuniary penalties should be imposed for admitted contraventions of ss 900 and 902 of the Workplace Relations Act 1996 (Cth) and s 357 of the Fair Work Act 2009 (Cth).' 'Whether the penalties agreed by the parties were within the permissible range and appropriate in all the circumstances.' 'What considerations were relevant to assessing penalties for sham contracting conduct.']

Ratio Decidendi

The admitted sham contracting contraventions were deliberate, involved the sole director and a course of conduct over about two years, deprived workers of employee entitlements and financially benefited Inner Strength, but the respondents admitted liability, cooperated, took some corrective action, obtained advice to reduce future risk, and had no prior relevant contraventions. Having regard to proportionality, deterrence, the totality principle and the principles governing agreed penalties, the proposed penalties were within the permissible range and should be imposed.

Court Disposition

Orders made imposing agreed pecuniary penalties on the respondents, payable to the Commonwealth, with no order as to costs.

Orders

  • ['A pecuniary penalty of $6,600.00 was imposed on Inner Strength for a contravention of s 900 of the Workplace Relations Act 1996 (Cth) by reason of the Iemma Representations.' 'A pecuniary penalty of $6,600.00 was imposed on Inner Strength for a contravention of s 900 of the Workplace Relations Act 1996 (Cth) by...