Skip to main content
FairWorkMate
FCAFederal Court of Australia · 21 June 2016

Construction, Forestry, Mining and Energy Union v Hail Creek Coal Pty Ltd (No. 2)

Citation: [2016] FCA 727

At a glance

Penalty
$24,000
Employees affected
6

What happened

Hail Creek Coal Pty Ltd employed six workers under an enterprise agreement providing access to paid sick leave when unable to work due to illness or injury. Between 2014 and 2016, the company refused to provide six named employees access to paid sick leave on multiple occasions when they were ill. The workers had notified management of their illness as required and requested sick leave, but the company refused to recognize their entitlements.

What was decided

The court declared the company contravened the enterprise agreement and section 50 of the Fair Work Act on multiple occasions by denying paid sick leave to six employees across numerous dates. The court found the contraventions arose from a course of conduct and constituted a single contravention under s 557(1). The company was ordered to pay a civil penalty of $24,000.

What it means for employers

Employers cannot arbitrarily refuse paid sick leave entitlements mandated by enterprise agreements. Even a pattern of denials across multiple employees and dates can be treated as a single course of conduct attracting substantial penalties. Employers must honour sick leave provisions regardless of operational convenience.

What it means for employees

If your enterprise agreement provides paid sick leave, you have a legal right to access it when unfit for work due to illness or injury. the Respondent cannot simply refuse these entitlements, and repeated denials can lead to court-ordered penalties and compensation.

Want this applied to your situation?

Reading the decision is free. FairWork Mate goes further — it reads the full case library and applies precedents like this one to your specific facts, citing the cases as it reasons. General information, not a guaranteed outcome or legal advice.

underpaymententerprise-agreement

Every statement above is drawn from the published decision. Read the original here:

https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2016/2016fca0727

Want more cases like this?

FairWork Mate tracks Fair Work Ombudsman, Fair Work Commission and Federal Court decisions across Australia. The AI advisor answers plain-English questions grounded on the full corpus — awards cited, industry, penalty amounts and affected employee counts — with a citation to the underlying decision on every answer.

Individual case summaries on this site are free. Full-corpus advisor access is a paid product — Business Solo from $99/mo, 50% off your first 3 months for the first 100 signups.

Get notified on new Fair Work cases

Free email alerts when we publish new underpayment decisions, penalty orders, and workplace law updates.

Free forever. No spam. Unsubscribe anytime.

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 →

← All cases