The South Australian Business Chamber Today

Do not get caught out with a costly underpayment

The Fair Work Ombudsman is focused on priority sectors and issues including:

  • fast food, restaurants and cafés
  • horticulture
  • franchise arrangements
  • contract cleaning
  • large corporate underpayments
  • sham contracting

Fair Work Inspectors have recently investigated a popular sandwich takeaway business after significant underpayments were discovered through this proactive audit process. The Fair Work Ombudsman has since recovered $182,596 in unpaid wages for 214 workers across franchises in four states. Along with the underpayments, the Fair Work Inspectors also found that the franchises were breaching their record-keeping obligations, including pay-slip requirements.

Inspectors also issued 18 Infringement Notices concerning the record-keeping obligations, resulting in $15,330 in fines paid, three contravention letters, and two formal cautions.

The longer an underpayment goes undetected, the more difficult and expensive it becomes to rectify when it is picked up. There can also be implications for superannuation, payroll tax and workers compensation premiums. The South Australian Business Chamber strongly recommends having a payroll and HR audit to ensure no errors are made in determining appropriate wages for staff and that payslips and other employment documentation are completed accurately.

How we can help?

The South Australian Business Chamber’s consultants are here to help. Our experience can assist you to complete these audits and resolve other areas of concern that come to light during this process. Our consultants can also provide representation in the situation where your business is dealing with a potential underpayment.
If you are interested in having one of our consultants undertake a payroll and HR audit, you can contact us on (08) 8300 0000 (select option one).

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