After receiving requests for assistance from affected workers, the Fair Work Ombudsman (FWO) undertook an investigation and has secured a total of $117,190 in penalties in court against the operators of a finance and mortgage-broking company in Sydney. The company failed to back-pay three workers and knowingly issued false or misleading pay slips.
The penalties were imposed in response to First Step Finance breaching the Fair Work Act by failing to comply with three Compliance Notices requiring it to back-pay three workers it had employed in management roles and knowingly issuing two of the workers false or misleading pay slips.
Fair Work Inspectors issued Compliance Notices to the company in August 2021, September 2022 and August 2023 in response to two of the workers being underpaid minimum wages for ordinary hours and all three workers being underpaid accrued but untaken annual leave entitlements owed at the end of their employment. These were owed under the Banking, Finance and Insurance Award 2020, the National Minimum Wage Order 2022 and the Fair Work Act’s National Employment Standards.
What does this mean for employers?
It’s important to note that employers who fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers. Employers need to understand they must meet all their obligations in relation to wage payments.
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, 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 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.
