Milardovic v Vemco Services Pty Ltd (Administrators Appointed) (No 2) [2016] FCA 244

Milardovic v Vemco Services Pty Ltd (Administrators Appointed) (No 2) [2016] FCA 244

A penalty should be imposed despite the respondent's administration, given the need for general deterrence and Vemco's deliberate contravention regarding redundancy pay. The penalty is payable to the applicant per s 546(3) of the Fair Work Act. No costs are ordered as refusal to accept settlement was not unreasonable under s 570(2)(b).

Jurisdiction
Australia
Judgment Date
16 March 2016
Procedural Posture
Civil / Post Liability, Penalty and Costs Determination
Outcome
judgment for applicant against first respondent; penalty and redundancy pay ordered; no costs ordered
Legal Topics
['penalties for Contraventions' 'redundancy Pay' 'administration and Liquidation' 'costs in Fair Work Act Proceedings']
['industrial Law' 'corporations Law'] ['penalties for Contraventions' 'redundancy Pay' 'administration and Liquidation' 'costs in Fair Work Act Proceedings']

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Procedural Posture

Civil / Post Liability, Penalty and Costs Determination

Legal Issues

  1. 1 ['Appropriate penalty for contravention of s 119(1) of the Fair Work Act' 'Whether penalty is provable against a company in administration or liquidation' 'Whether capacity to satisfy penalty affects imposition' "Whether costs should be ordered given respondents' settlement offer refusal"]

Ratio Decidendi

A penalty should be imposed despite the respondent's administration, given the need for general deterrence and Vemco's deliberate contravention regarding redundancy pay. The penalty is payable to the applicant per s 546(3) of the Fair Work Act. No costs are ordered as refusal to accept settlement was not unreasonable under s 570(2)(b).

Court Disposition

judgment for applicant against first respondent; penalty and redundancy pay ordered; no costs ordered

Orders

  • ['First respondent to pay applicant $30,024.60 ($26,250.00 redundancy pay + $3,774.60 interest).' '30-day stay on payment order.' 'First respondent to pay applicant $10,000 penalty for contravention of s 44(1) of Fair Work Act.' 'Penalty payable to applicant by 15 April 2016.' 'No order as to costs.']