As part of the Secure Australian Jobs Plan, the Australian Government has made it clear that they intend to legislate to make underpayment of wages a criminal offence. The Australian Government is currently consulting with our peak body in Canberra, the Australian Chamber of Commerce and Industry, employer groups in other states and territories, and unions. Now is a great time to check your procedures to ensure you are paying your people correctly.
Underpayment of wages has been a priority of the Fair Work Ombudsman for some time, particularly in industries such as hospitality. The Fair Work Ombudsman have announced that they are making surprise inspections this week in multiple cafes, restaurants and fast food businesses in Melbourne to ensure their compliance with workplace laws.
The Fair Work Ombudsman is taking action after receiving anonymous reports that businesses in this area are breaching workplace laws. These inspections are a part of a national food precinct program with a particular focus on employers of visa holders, considered vulnerable workers.
As a result of targeting 48 businesses in the fast food, café and restaurant sector in Darwin, the Fair Work Ombudsman recently recovered $393,453 in underpayments. Fast food, restaurant and café sector matters account for 36 per cent of Fair Work Ombudsman litigation in 2020/2021.
Fair Work Ombudsman is speaking with business owners, managers and employees and requesting to see records to ensure there are no underpayments of wages. Employers should note that an inspection from the Fair Work Ombudsman will not just focus on the rate of pay the employee receives. Inspectors will also be looking for:
If the Fair Work Ombudsman finds breaches of workplace laws, they will hold employers accountable and consider taking enforcement action if necessary. Employers who ignore the Fair Work Ombudsman’s instructions may face legal proceedings before a judge in the Federal Circuit and Family Court of Australia.
Call South Australian Business Chamber
You cannot afford to get it wrong. The South Australian Business Chamber’s team of consultants are experts in industrial relations. They can work with you to conduct an audit on your payroll system. Our Workplace Advisors are also on standby to advise you on rates of pay, Modern Award classifications and more.
Contact the South Australian Business Chamber on (08) 8300 0000 (select option 1) for advice and guidance on determining applicable rates of pay.
