Barkly Region Alcohol and Drug Abuse Advisory Group Aboriginal Corporation v Naylor
Citation: [2019] FCA 1292
At a glance
- Employees affected
- 1
What happened
Stewart and Anna Naylor were CEO and Services Manager of Barkly Region Alcohol and Drug Abuse Advisory Group Aboriginal Corporation for over seven years. Stewart Naylor claimed and was paid approximately $474,287 in overtime payments for hours either not performed or unauthorized. Anna Naylor was paid approximately $153,887 in overtime. Stewart Naylor also authorized expenditure on personal items (iPads, iPhones, luxury clothing) totaling tens of thousands. These actions paralleled criminal fraud proceedings alleging deception and theft by deception.
What was decided
The court granted a stay of the civil proceedings because criminal proceedings against both Naylors were already on foot for substantially the same conduct (obtaining benefits by deception). Under s.553 of the Fair Work Act, pecuniary penalty proceedings are stayed when criminal proceedings are based on substantially the same conduct. The Court stayed the entire civil proceeding in the interests of justice, noting the Naylors' lack of financial means and Mrs. Naylor's serious illness.
What it means for employers
Organizations must implement proper authorization and governance controls over overtime claims and expenditure, particularly for senior executives. Where fraud is suspected, criminal and civil remedies may be available, but civil penalty proceedings will be stayed pending criminal trial. Employers should preserve evidence and reporting of suspected misconduct.
What it means for employees
Where employee misconduct involves potential fraud or theft, criminal proceedings may precede or overlap with civil remedies. Employees have rights to silence in criminal proceedings, which may delay civil compensation. Claimed overtime and personal expenses not authorized by organizational policy may be treated as fraudulent misappropriation.
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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