General Manager of Fair Work Australia v Health Services Union [2014] FCA 970

General Manager of Fair Work Australia v Health Services Union [2014] FCA 970

Appropriate pecuniary penalties were imposed on each respondent (organisation and individuals) to reflect the seriousness of admitted contraventions of the Registered Organisations Provisions, ensuring general deterrence, with discounts for cooperation and contrition. Compensation and interest were ordered against the third respondent for unauthorised payments. Applications for relief from liability under s 315(2) were refused, as circumstances did not justify excusing the respondents from their statutory obligations.

Parties
Applicant: General Manager of Fair Work Australia; First Respondent: Health Services Union; Second Respondent: Pauline Fegan; Third Respondent: Jeff Jackson; Fourth Respondent: Shaun Hudson
Jurisdiction
Australia
Judgment Date
10 September 2014
Procedural Posture
Civil Penalty Proceeding / Judgment on Liability, Penalty, Declarations, Compensation, and Interest
Outcome
Penalties and compensation ordered. Declarations made. Relief from liability refused.
Legal Topics
Contraventions of Financial Accountability Provisions, Penalties, General and Specific Deterrence, Officer Duties and Governance, Compensation for Registered Organisations, Declarations in Civil Penalty Proceedings
Industrial Law Contraventions of Financial Accountability Provisions Penalties General and Specific Deterrence Officer Duties and Governance Compensation for Registered Organisations Declarations in Civil Penalty Proceedings

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Parties

General Manager of Fair Work Australia

Applicant

Health Services Union

First Respondent

Pauline Fegan

Second Respondent

Jeff Jackson

Third Respondent

Shaun Hudson

Fourth Respondent

Procedural Posture

Civil Penalty Proceeding / Judgment on Liability, Penalty, Declarations, Compensation, and Interest

Legal Issues

  1. 1 What is the appropriate penalty for admitted contraventions of the Fair Work (Registered Organisations) Act 2009 (Cth) by the respondents?
  2. 2 Should compensation be ordered against the third respondent for breaches causing loss to the Health Services Union?
  3. 3 Should declarations be made for each contravention, including for non-civil penalty provisions?

Ratio Decidendi

Appropriate pecuniary penalties were imposed on each respondent (organisation and individuals) to reflect the seriousness of admitted contraventions of the Registered Organisations Provisions, ensuring general deterrence, with discounts for cooperation and contrition. Compensation and interest were ordered against the third respondent for unauthorised payments. Applications for relief from liability under s 315(2) were refused, as circumstances did not justify excusing the respondents from their statutory obligations.

Court Disposition

Penalties and compensation ordered. Declarations made. Relief from liability refused.

Orders

  • Penalties imposed: HSU $38,500; Fegan $4,505; Jackson $18,262.50; Hudson $6,720.
  • Third respondent (Jackson) to pay HSU compensation $16,569.88 plus interest $10,229.52.