Transition of Business – hidden costs

Transition of Business – hidden costs

A number of workers in Melbourne have been back-paid following recent intervention by the Fair Work Ombudsman. The largest recovery was for four young casual waitresses at a café  who were underpaid a total of $13,000.

After buying the café, the owner continued the previous employer’s practice of paying flat rates, rather than checking the wage rates applicable to the business. As a result, the new owner had to back pay the employees for the entire time they were underpaid, and received a fine for their conduct.

When you are looking to take over or business or if you have recently taken over a business, a HR Audit of wages and conditions is crucial. You can never make the assumption that staff are being paid correctly, or that the previous business owners were following legislation correctly.

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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