Why you can’t afford to pay employees incorrectly

South Australian Business News
Elisa Luck
Wednesday, June 21st 2023
Underpayment of wages

Underpayment of wages continues to be an area of focus of the Fair Work Ombudsman (FWO) with penalties being imposed against businesses across the country including here in South Australia. 

The Fair Work Commission recently announced that the National Minimum Wage will be increased to $882.80 per week or $23.23 per hour and a 5.75% increase to minimum award wages. The increase applies from the first full pay period starting on or after 1 July 2023. 

The annual wage increase decision impacts all employers and you need to ensure you apply the increase not only to adult wages but also recognise that the increases flow proportionately to junior employees, employees to whom training arrangements apply, employees with a disability and employees with basic piece rates of pay.

Now is a good time to ensure you are paying your employees correctly, as the FWO will continue to be proactive and conduct inspections on businesses to ensure their compliance with workplace laws, which may involve the FWO speaking with business owners, managers and employees and requesting to see records to ensure there are no underpayments of wages. 

FWO will not just focus on the rate of pay that the employee is receiving but 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. 

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 are complex and at times, unintentionally mistakes, which unfortunately may result in an underpayment. 

How We Can Help:

You can’t afford to get it wrong! the 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 of Workplace Advisors are also on standby to provide you with advice on rates of pay, Modern Award classifications and more. 

Contact the South Australian Business Chamber at (08) 8300 0000 (select option 1) and we will make sure you that are not at risk of a costly underpayment. 

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