Fair Work Ombudsman v Crystal Carwash Cafe Pty Ltd (No 2) [2014] FCA 827

Fair Work Ombudsman v Crystal Carwash Cafe Pty Ltd (No 2) [2014] FCA 827

Contraventions of the Award and Fair Work Act by Crystal Carwash and senior managers were serious, deliberate, part of a pattern of conduct, and involved vulnerable employees. Penalties approaching the statutory maximum appropriate for deterrence and to mark the Court's disapproval.

Parties
Applicant: Fair Work Ombudsman; First Respondent: Crystal Carwash Cafe Pty Ltd (ACN 060 916 770); Second Respondent: Anthony Sahade; Third Respondent: Peter Khouri; Fourth Respondent: Baddington Pty Ltd (ACN 137 049 560); Fifth Respondent: Seekton Pty Ltd (ACN 137 049 579); Sixth Respondent: Ozrest Pty Ltd (ACN 137 219 820); Seventh Respondent: Schatry Pty Ltd (ACN 137 219 802); Eighth Respondent: Cooljam Pty Ltd (ACN 141 762 352); Ninth Respondent: Ozrun Pty Ltd (ACN 141 762 389); Tenth Respondent: Tushar Investments Pty Ltd (ACN 141 758 045); Eleventh Respondent: Lucky Horizons Pty Ltd (ACN 144 648 975); Twelfth Respondent: Pepper Stone Pty Ltd (ACN 144 649 427); Thirteenth Respondent: Oak Mink Pty Ltd (ACN 145 471 941)
Jurisdiction
Australia
Judgment Date
07 August 2014
Procedural Posture
Civil Penalty Proceedings / Judgment (penalty Determination)
Outcome
Penalties imposed against respondents; declarations of contravention; dismissal of balance of claim and cross-claim; no order as to costs.
Legal Topics
Award Contraventions, Underpayment of Wages, Overtime Entitlements, Record Keeping Requirements, Civil Penalties
Employment Law Industrial Law Award Contraventions Underpayment of Wages Overtime Entitlements Record Keeping Requirements Civil Penalties

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Parties

Fair Work Ombudsman

Applicant

Crystal Carwash Cafe Pty Ltd (ACN 060 916 770)

First Respondent

Anthony Sahade

Second Respondent

Peter Khouri

Third Respondent

Baddington Pty Ltd (ACN 137 049 560)

Fourth Respondent

Seekton Pty Ltd (ACN 137 049 579)

Fifth Respondent

Ozrest Pty Ltd (ACN 137 219 820)

Sixth Respondent

Schatry Pty Ltd (ACN 137 219 802)

Seventh Respondent

Cooljam Pty Ltd (ACN 141 762 352)

Eighth Respondent

Ozrun Pty Ltd (ACN 141 762 389)

Ninth Respondent

Tushar Investments Pty Ltd (ACN 141 758 045)

Tenth Respondent

Lucky Horizons Pty Ltd (ACN 144 648 975)

Eleventh Respondent

Pepper Stone Pty Ltd (ACN 144 649 427)

Twelfth Respondent

Oak Mink Pty Ltd (ACN 145 471 941)

Thirteenth Respondent

Procedural Posture

Civil Penalty Proceedings / Judgment (penalty Determination)

Legal Issues

  1. 1 Whether respondents contravened the Vehicle Manufacturing, Repair, Services and Retail Award 2010
  2. 2 Whether underpayment of minimum rates of pay and overtime entitlements occurred
  3. 3 Whether record keeping requirements under the Fair Work Act 2009 were breached

Ratio Decidendi

Contraventions of the Award and Fair Work Act by Crystal Carwash and senior managers were serious, deliberate, part of a pattern of conduct, and involved vulnerable employees. Penalties approaching the statutory maximum appropriate for deterrence and to mark the Court's disapproval.

Court Disposition

Penalties imposed against respondents; declarations of contravention; dismissal of balance of claim and cross-claim; no order as to costs.

Orders

  • Penalty of $30,000 imposed on Crystal Carwash for underpayment of minimum rates.
  • Penalty of $30,000 imposed on Crystal Carwash for underpayment of overtime entitlements.