Underpayment of Wages continues to be an area of scrutiny by the Fair Work Ombudsman (FWO) and we continue to see financial penalties being imposed by the FWO against all sizes of employers. As part of their regulatory focus, 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.
Here at the South Australian Business Chamber we deal with thousands of businesses who 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, 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. Under the changed Industrial Relations law penalties have also increased.
How We Can Help:
You can’t afford to get it wrong! 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 or Workplace Advisors are also on standby to provide Members with advice on rates of pay, Modern Award classifications and more. Contact our Business Advice Hotline 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 our website or contact us on (08) 8300 0247.
