Recently, the Fair Work Ombudsman (FWO) communicated that national retail company, Dusk Australasia Pty Ltd (Dusk), was back-paying employees more than $2.3 million, following its self-reported underpayments to the FWO.
Dusk had identified and commenced back paying more than 1,500 current and former employees for underpayments that occurred between 2013 and 2019 and individual back payments range from $4.00 to over $26,000. On top of this Dusk is also paying employees interest and superannuation in relation to underpayments.
Dusk entered into an Enforceable Undertaking (EU) with the FWO and the FWO was satisfied that an EU was appropriate as Dusk had co-operated with the investigation and demonstrated a strong commitment to rectifying all underpayments.
This highlights how important it is for businesses to ensure that they are paying their employees correctly. The longer an underpayment goes undetected, the more difficult and expensive it becomes to rectify when it is picked up. Furthermore, there can be implications for superannuation, payroll tax and workers compensation premiums as well.
As part of the EU Dusk committed to putting in place several measures including engaging an expert auditing firm to assess the outcomes of its rectification program and audit its compliance with workplace laws over the next two years.
If you need help to ensure you are paying your employees correctly contact our Business Advice Hotline on (08) 8300 0000 (select option 1). Not a member, not a worry — In partnership with the Fair Work Ombudsman, the South Australian Business Chamber is here to provide industrial relations advice to businesses covered by Commonwealth Workplace Laws – call our workplace experts on (08) 8300 0000 (select option 2).
Now is always a good time to have an independent expert undertake a compliance audit, our Senior Consultants are also on standby to provide you with this. Call today on (08) 8300 0000 and speak with one of our highly experienced Senior consultants.
