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The Federal Circuit Court has imposed maximum fines on an employer and its director after finding they made "unmeritorious" claims against a general manager "solely" to avoid paying her entitlements.

In March last year, Judge Rolf Driver found Atanaskovic Hartnell Corporate Services Pty Ltd – the services entity for law firm Atanaskovic Hartnell – and its director failed to pay its general manager annual and long-service leave entitlements, as well as accrued but unpaid salary, when she resigned in late 2016.

The employer and director made two cross-claims against the GM, accusing her of negligent actions and contract breaches during her employment, and argued that they weren't required to pay her because they could "set off" her entitlements against the damages they were seeking...