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Business fined $76,000 for underpaying staff

UnderpaymentsDecember 22, 2014

Business fined $76,000 for underpaying staff (Last Updated On: November 21, 2016)

Glenelg Auction centre in Portland Victoria runs a successful and competitive antique retail store. Owned by Westlink International the business appeared to be operating sufficiently. However the business was investigated when a staff member suffered to recoup monies owed. The situation has financially impacted the business in a big way.

In the past, Glenelg Auction centre has paid a staff member an hourly wage of $15 which was then risen to $20 an hour over a 3 year employment period. Oblivious to underpayments over this significant time period, the business owner now faces fines of $76,000.

The staff member was underpaid by $30,000 and that was only the beginning.

As a result the Federal Circuit Court has fined business owner Brian O’Halloran $9900 and the business itself $66,000 for many flaws in their employment previsions:

  • The employee did not receive enough remuneration, wages did not meet the national minimum wage laws;
  • The employee was a casual worker who should have been paid 25% casual loading. This was not the case.

The business owner is required to pay the staff member in full within 90 days. This amount of money can cripple a business.

Business owners are required to follow the Fair Work Act. Should any employer suggest their own wage negotiation with their staff it should be reviewed by a professional and check whether or not this agreement meets the specific minimum wage entitlements.

Employers if you are unsure if you are currently meeting these wage entitlements call Employsure today on 1300 651 415. Employsure can help you to meet employment obligations in a hassle free way, we can also offer you with employment relations assistance any time of day, 365 days of the year.

The current Christmas period can be a difficult time for employers who can get caught up in casual wage entitlement confusion. In lots of industries especially retailing this coming week you may need to pay your employees differently. If you have any questions we are ready to take you call.

*Information sourced via SBS News website.

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