You would be aware of what’s going on in the news with regards to the underpayment of wages. Some of the biggest brand names have faced the Fair Work Ombudsman’s scrutiny with regards to this topic and some of these include; Coles, Woolworths, McDonalds and 7-Eleven.
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7 –Eleven has been in the news for months now about how it has underpaid its workers and it continues to be caught up in this underpayments scandal.
Overall, the majority to business try and do the right thing, and navigating the maze of employment legislation can be complex.
Some examples of why companies are heading to the Commission are:
- underpayments of international students,
- falsification of records,
- intimidation and threats
- Underpayment of working holiday visa holders
- excessive working hours and overcrowded, overpriced accommodation for employees holding working visa’s
- Sham contracting
To read further details on recent cases refer to the Fair Work Ombudsman site.
It is also good to be aware of the fact the Fair Work Ombudsman is now not only focusing on businesses but individuals who may be responsible. Presently, failure to comply with Modern Award clauses can be costly, penalties can be imposed on companies of up to $54,000 per contravention and $10,800 for individuals. The impact to a business for a visit to Fair Work is not only financial it can have a significant negative impact on your brand image and reputation.
The one way to avoid this type of attention by your employees and the media is to ensure you are paying the correct entitlements to your employees and remember the wage increase handed down from 1 July 2016.
If you require any assistance to ensure that you are paying the correct wages, please give us on call on 1300 872 566.
Author Contribution Jeanetta Munro
