Underpayment of Wages has been a priority of the Fair Work Ombudsman (FWO) for some time and we are regularly seeing penalties being imposed by the FWO. The FWO continue to conduct inspections on businesses to ensure their compliance with workplace laws.
This may involve the FWO speaking with business owners, managers and employees and requesting to see records to ensure there are no underpayments of wages. It is important for employers to understand that an inspection from the FWO will not just focus on the rate of pay that the employee is receiving. Inspectors will also be looking for low flat rates, unrecorded employment arrangements, inaccurate records, unreasonable unpaid trials, incorrect applications of Modern Award or Enterprise Agreement provisions, inadequate breaks and more.
Further, we are aware that the Malinauskas State Government intends to introduce legislation to parliament this year that will seek to make wage theft a criminal act – with potentially significant penalties attached. The South Australian Business Chamber already has a seat at the negotiation table and will argue for the best interests of the business community as this bill is drafted.
Here at the South Australian Business Chamber we deal with thousands of businesses that are attempting to do the right thing and pay their staff correctly, however, we know that industrial relations is complex and at times, unintentionally mistakes are made, which unfortunately may result in an underpayment.
If breaches of workplace laws are found, the FWO will hold employers accountable and consider taking enforcement action if necessary. Employers who ignore the FWO’s instructions, they may face legal proceedings before a judge in the Federal Circuit and Family Court of Australia.
How We Can Help:
You can’t afford to get it wrong! the South Australian Business Chamber’s team of Consultants are experts in industrial relations and can work with you to conduct an audit on your payroll system. Our team of Workplace Advisors are also on standby to provide you with advice on rates of pay, Modern Award classifications and more.
Contact the South Australian Business Chamber on (08) 8300 0000 (select option 1) and we will make sure you that are not at risk of a costly underpayment.
Its also an opportune time to consider what training your managers may need – visit business-sa.com/training
Not a member not a problem visit business-sa.com/join
