Fair Work Ombudsman v Blue Sky Kids Land Pty Ltd (in liq) (No 3)
Citation: [2024] FCA 785
At a glance
- Employees affected
- 4
- Awards cited
- MA000003, MA000008
What happened
Two related clothing companies (Blue Sky Kids Land Pty Ltd and Q Fay Trading Company Pty Ltd) employed the Applicant, Xing Yang, Tzu Fong Yu, and Jin Zhang. From October 2015 to June 2018, the companies failed to pay minimum rates, casual loadings, Saturday/Sunday/public holiday penalty rates, overtime rates, and superannuation contributions. Payment was irregular. The Applicant's full-time employment was terminated without notice or payment of accrued annual leave. Jin Zhang was threatened with dismissal and offered sham contractor status if she did not resign. Inspectors were hindered when company officials ordered destruction of timesheets.
What was decided
The Court found extensive contraventions of the Fair Work Act and Regulations. The first respondent (Blue Sky) contravened section 45 by failing to pay award rates and entitlements, section 44(1) regarding annual leave, section 323(1) regarding payment frequency, section 340(1)(a)(ii) by threatening to dismiss Jin Zhang for speaking to an inspector, and section 358 regarding sham contracting. The second respondent assisted. Third and fourth respondents knowingly participated. Serious contraventions were found. Penalties to be determined.
What it means for employers
Employers must pay all award rates including casual loadings and penalty rates. Record-keeping must be complete and accessible. Threatening employees who speak to inspectors is unlawful. Attempting to convert employees to contractor status through threats is prohibited.
What it means for employees
Employees have protection against wage theft, underpayment of award entitlements, casual loadings, and penalty rates. Employees are protected from dismissal threats for cooperating with inspectors. Sham contracting arrangements are unlawful.
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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 →