Wages – Compliance and Underpayments

Wages – Compliance and Underpayments

In what is becoming an almost weekly occurrence, another large company is undergoing a self-audit due to issues that have arisen around the payment of wages.

A Western Australian chicken outlet will have the wages of all past and present employees reviewed. The aim is to determine if they are being paid under the correct Award, classifications and are receiving the right payments.

This all came about because of an audit by fair work inspectors – not because employees made a complaint. We often talk about the inspectors and their critical role out in the workplace. This is another example of them doing a great job in identifying underpayments. HR central is equipped to perform this role before any inspectors arrive. It also allows you to demonstrate correct payment under the correct award and if there has been an error, the steps taken to rectify the situation.

In this instance, the company was required to back pay over $35,000 to employees, an investment in HR Central would have gone a long way to identifying the problems earlier and providing a swift solution.


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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