Underpayment of Wages

Underpayment of Wages

One of the key aspects of the HR Central process is an audit to review appropriate award coverage and rates of pay. We do this because we especially want to make sure our clients are paying the right rates of pay and have not inadvertently made a payroll error.

So it’s worth providing just some of the recent examples where the Fair Work Ombudsman have found underpayments – just to underscore what an important tool this is for you as an employer.

The largest was a Camberwell café who had underpaid $24,300 to its employee’s for lack of penalty rates for shift work, weekends and public holidays and annual leave loading entitlements. Some employees were also underpaid their minimum hourly rates.

Why – because the business was not fully aware of its workplace obligations, which is no defense. The employer still had to pay the $24 300!

Other recent underpayment of wages included:

– $19,000 for a Mooroolbark phone consultant not paid for all hours worked while ‘on call’.
– $18,900 for a property manager at Ringwood East underpaid her casual loading entitlements.
– $18,000 for workers at an East Melbourne serviced apartment underpaid their casual loadings and weekend and public holiday’s penalty rates.
– $13,100 for cleaners at a Hawthorn cleaning business underpaid the minimum hourly rate and overtime, weekend and public holiday penalty rates.
– $6200 for shop assistants at a Croydon bakery underpaid the minimum hourly rate and weekend penalty rates.
– $5900 for workers at a Camberwell café underpaid weekend penalty rates.

All significant amounts to be back paid and all identifiable through the becoming a client of HR Central and utilising our audit process.

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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