Fair Work Ombudsman v Eastern Colour Pty Ltd (No 3)
Citation: [2016] FCA 186
At a glance
- Penalty
- $160,000
- Employees affected
- 4
- Awards cited
- MA000018
What happened
Eastern Colour, a fruit farm, underpaid four casual employees over several years. The employer failed to pay: basic periodic rates under awards; overtime rates for hours over 40 per week; overtime for public holidays; casual loading; special allowances; and superannuation. The farm also failed to keep proper wage records and did not issue pay slips. A director, Louisa Baronio, implemented the scheme. The underpayment totaled approximately $19,034 across the four employees.
What was decided
The Federal Court found the employer contravened ss.182 and related award provisions. Courts found related entities (second and third respondents) were involved in the contraventions. The first respondent was ordered to pay $50,000 in total penalties; the second respondent $50,000; the third respondent $50,000; and the director $10,000. The court emphasized the deliberate, blatant nature of the scheme and the vulnerability of young, casual workers. Specific and general deterrence were required given the deliberate avoidance of minimum legislative entitlements.
What it means for employers
Fruit and vegetable producers must comply with minimum rates of pay, overtime, casual loading, and superannuation obligations. The systematic underpayment of young or vulnerable casual workers carries substantial penalties. Related entities and directors implementing such schemes may face personal liability. Penalties aim to deter similar conduct across the agricultural sector. Proper wage records and pay slips are mandatory compliance obligations.
What it means for employees
Casual farm workers have protections against underpayment including minimum rates, overtime, public holiday rates, casual loading, and superannuation. If an employer systematically underpays, workers can lodge complaints with the Fair Work Ombudsman. Courts will impose meaningful penalties to protect vulnerable young workers in casual roles. Back-pay may be recovered alongside penalties.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2016/2016fca0186Send your details to Liquid Employment Lawyers
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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