The Fair Work Ombudsman’s Office has been involved in its first contempt-of-court legal case.
The Federal Circuit Court sentenced the owner-operator of a Cairns company trading as Trek North Tours, to a 12-month jail term and fined him $84,956 for committing contempt of court.
The Court heard the businessman Leigh Alan Jorgensen had contravened an assets freezing order that applied to funds in his company’s accounts.
It ordered that Mr Jorgensen’s jail term be suspended after he had spent 10 days in jail on the condition of payment of the fine.
Mr Jorgensen sought an urgent stay of the orders in the Federal Court and lodged an appeal against his conviction and sentence.
The Fair Work Ombudsman, Natalie James (pictured) agreed to the stay on conditions, in accordance with her model litigant obligations.
The Federal Court then ordered that the sentence be stayed and Mr Jorgensen be released from jail on conditions, pending the outcome of his appeal.
The matter is the first time the Fair Work Ombudsman has begun a contempt-of-court action and the first time a jail term has been imposed as a result of the Agency’s actions.
Freezing orders were imposed in the Federal Circuit Court in 2015 preventing any dispersion of Mr Jorgensen’s or his company’s assets until such time as they complied with penalty and back-payment orders.
These orders had resulted from the Fair Work Ombudsman taking legal action against Mr Jorgensen and his company for underpaying five backpackers on 417 working holiday visas in 2013 and 2014.
Ms James said the proceedings demonstrated that her Agency was prepared to use every tool at its disposal to ensure justice was served.
