Stratton Finance Pty Limited v the Respondent (No 2)
Citation: [2014] FCAFC 161
At a glance
- Penalty
- $58,630
- Employees affected
- 1
What happened
the Applicant was employed by Stratton Finance in a role involving commissioned work. Stratton Finance failed to pay the Applicant unpaid commissions totalling $117,764.49 and failed to remit superannuation on those commissions ($10,598.80 owing). The company failed to provide proper documentation of payments. the Applicant brought proceedings claiming unpaid wages and seeking penalties under the Fair Work Act and Workplace Relations Act.
What was decided
The Full Court upheld findings that Stratton Finance contravened the Fair Work Act and Workplace Relations Act by failing to pay commission and superannuation. The court ordered Stratton to pay the Applicant $117,764.49 in unpaid commission within 14 days, $10,598.80 for superannuation contributions, $44,899.12 in interest (calculated to 17 October 2014), and penalties of $58,630. Costs were ordered on indemnity basis for Fair Work Act claims and party-party basis for other claims.
What it means for employers
Employers must accurately calculate and pay all commissioned remuneration when due. Failure to remit superannuation on commissions constitutes a separate breach. Companies that fail to properly account for payments face substantial financial penalties.
What it means for employees
Employees who work on commission are entitled to payment when work is performed. Employers must also contribute superannuation on commission income. Withholding or delaying commission payments creates liability for penalties.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections