Underpayment of Wages – Fines

Underpayment of Wages – Fines

A Sydney based cleaning company was first found to have underpaid its staff more than $18,000 after an audit in 2011. A follow-up audit in 2013 found additional former and current employees had also been underpaid more than $40,000.

In one case, the underpayment was $3635 and in three other cases, more than $3000. The company decided to pay a flat rate for all hours worked which was a breach of the relevant Award that they fell under.

As part of the process the Fair Work Ombudsman required an apology to all staff and rectification of  the underpayments in full.

As an alternative to litigation, a trend has developed where the Fair Work Ombudsman has entered into an Enforceable Undertaking with the Company. If this were to occur, HR Central would cover all the bases required to be compliant.

Another area that the HR Central system can assist with is one of the requirements of the settlement. This is where the company must engage a full-time book-keeper to ensure its pay rates are compliant in future.HR Central could and does play that exact role.

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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