Recent underpayment claims

Recent underpayment claims

Almost $100,000 back-paid to workers in Melbourne’s South and South-Eastern suburbs

Fair Work Ombudsman Natalie James says the underpayments should serve to remind all employers about how important it is for them to take the time to ensure they are aware of the minimum pay rates applicable to their staff.

“A small mistake left over time can easily result in a hefty bill for back-payment of wages – so it is important employers get it right in the first place,” she said.

Recent recoveries include:

  • $14,000 for 25 cleaners at a South Yarra cleaning business underpaid their penalty rates for overtime and public holiday work,
  • $7700 for a spray painter at a Dandenong panel beating business underpaid his minimum hourly rate,
  • $7500 for five shop assistants at an Ashburton retail business underpaid their minimum hourly rates and penalty rates for overtime and weekend work,
  • $6400 for six workers, including bar, kitchen and wait staff, at another Glen Waverley restaurant underpaid their late-night and weekend penalty rates,
  • $5600 for a financial planner at Port Melbourne underpaid his accrued annual leave and outstanding wages upon termination of employment,
  • $5100 for a machine operator at a Seaford manufacturing business underpaid his redundancy entitlements on termination of employment, and
  • $5000 for a property manager at a Carrum Downs real estate agency underpaid her minimum hourly rate, overtime and vehicle allowances.

Lesson: For an Employer, HR Central’s audit process and on-going support can help so you get it “right in the first place” and avoid that small mistake that leads to a “hefty back payment of wages over time”.

Michael O'Shaughnessy

Michael is a specialist in all things HR. With vast HR experience in the USA and Australia, Michael brings a wealth of knowledge and advice to HR Central. When he's not blogging for HR Central you can find him out for dinner in one of Melbourne's newest restaurants.

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