On 15 September 2017, the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (‘’Act’’) came into operation. The Act introduces wide-ranging changes in the employment sector, including higher penalties for breaches of record-keeping and pay-slip obligations, strengthening the Fair Work Ombudsman’s powers of investigation, and importantly, significantly increasing penalties for ‘serious contraventions’ by employers.
A ‘serious contravention’ involves a person or business knowing they were contravening an obligation under a workplace law, and the contravention was part of a systematic pattern of conduct affecting one or more people. Relevant workplace laws include the National Employment Standards, a modern award or enterprise agreement, and a national minimum wage order (among others).
Prior to the Act, there was no distinction drawn between a serious contravention and a non-serious contravention. Any contravention carried a maximum penalty of $12,600 for individuals and $63,000 for companies. Following the introduction of the Act, the maximum penalty has increased tenfold to $126,000 and $630,000 respectively.
The recent case of Fair Work Ombudsman v NSH North Pty Ltd [2017] FCA 1301 is an example of an employer having been successfully prosecuted for serious contraventions. The penalties were not as high as the maximum available, however they were substantial nonetheless.
