Surprise inspections lead to identification of underpaid workers

South Australian Business News  •  HR and workplace relations
Elisa Luck
Thursday, November 21st 2024
Underpayment

Following investigations, the Fair Work Ombudsman (FWO) has recovered $310,017 for 370 underpaid food outlet employees in Adelaide’s western suburbs and issued more than $100,000 in fines for pay slip and record-keeping breaches, following surprise inspections. 

These surprise inspections were at 36 fast food outlets, restaurants and cafés – mostly cheap eats’ venues in the western suburbs. FWO has advised that these businesses were targeted for investigation based on FWO intelligence from a range of sources, including anonymous reports.

Improving compliance in the fast food, restaurants and cafés sector remains an ongoing priority for the regulator. Of the 33 investigations finalised, the FWO found 26 businesses (79 per cent) had breached workplace laws, with the most common breaches being:

  • a failure to pay various penalty rates (25 businesses),
  • underpaying minimum wages for ordinary hours (20 businesses),
  • record-keeping breaches (eight businesses), and
  • pay slip breaches (eight businesses).

The FWO are prioritising on ensuring compliance in the University, Agriculture, Aged Cre, building and construction, disability support services, large corporations and fast food and restaurants sectors. 

This underscores the importance of employers across all industries complying with wage laws, including penalty rates, which are typically intended to compensate employees working during unconventional hours. Employers who violate these laws are being identified and held accountable.

Its important that employers also recognise that accurate record-keeping is fundamental to compliance, and as highlighted above some employers have faced consequences for neglecting these legal requirements.

We are here to help

Here at the South Australian Business Chamber (SABC) 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, unintentional mistakes may result in an underpayment. If you are unsure or think it might be time to check what you are paying our team of Consultants are experts in industrial relations and can work with you to conduct a compliance audit. 

Our team or Workplace Advisors are also on standby to provide Members with advice on rates of pay, record keeping requirements, Modern Award classifications and more. For workplace advice contact our Business Advice Hotline on (08) 8300 0000 (select option 1) or register your on-line enquiry here.

Author

Elisa Luck

General Manager, Programs and Consulting
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