In light of recent news regarding leading companies under paying staff, we decided to repost our older article. Along with the introduction of new laws, the Fair Work Ombudsman has put employers on notice that ignorance is no longer an acceptable excuse for not meeting their minimum obligations in relation to record keeping & paying employees.
Ignorance No Longer An Excuse – Recent interventions by the Fair Work Ombudsman (FWO) has resulted in workers in both New South Wales and Victoria receiving thousands of dollars in back payment for the underpayment of wages and entitlements. A worker in Lake Macquarie who was incorrectly classified as an apprentice has been paid $25,220 in back payment while 23 workers in the Goulburn Valley region in Victoria have been back paid a total of $34,000.
These interventions by the FWO come on the back of the Fair Work Amendment (Protecting Vulnerable Workers) Act passing through Federal Parliament early last month with many of the provisions of this Act becoming effective from 14 September 2017. The key elements of this new Act are:
- The granting of greater investigatory powers to the FWO
- The introduction of new penalties for providing Fair Work Inspectors with false or misleading information
- Doubling of penalties associated with breaches of record keeping and pay slip obligations
- Introduction of a new category of “serious contraventions” if employers knowingly contravene the law and there is a systemic pattern of law-breaking with penalties up to 10 times the current maximum. That is individuals could face penalties up to $126,000 per contravention while corporations could be fined up to $630,000 per contravention.
- From the 28 October 2017 franchisors and holding companies can be held responsible if their franchises or subsidiary don’t follow workplace laws
Along with the introduction of these new laws the Fair Work Ombudsman Natalie James has put employers on notice that ignorance is no longer going to be an acceptable excuse for not meeting their minimum obligations in relation to record keeping and paying employees. Natalie James further stated that employers are responsible for finding out what their minimum obligations to their employees are and that the FWO is prepared to take enforcement action, including litigation and heavy financial penalties, for reckless, deliberate and repeated breaches of the pay and record keeping laws.
For assistance in ensuring that your business is compliant with current pay and recording keeping requirements under the Fair Work Act 2009 please contact ABILITY GROUP.
Source: WorkplaceInfo
Title: Goulburn Valley workers back – paid $34K
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