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Food manufacturing, false records and enforceable undertakings

UnderpaymentsSeptember 15, 2014

Food manufacturing, false records and enforceable undertakings (Last Updated On: September 15, 2014)

A Melbourne based food manufacturing company Kanodia Nominees Pty Ltd has been underpaying staff for over two years. Failure to correctly pay staff under the Food, Beverage and Tobacco Manufacturing Award 2010 has meant that the employers now face enforceable undertakings.

Complaints from employees lead to an investigation from the Fair Work Ombudsman (FWO) who found;

  • underpayments ranging from $106 to $4896 and totalling over $20,000 of paybacks for employers.
  • Employees were not paid the correct minimum rates, over time rates and annual leave loading.
  • The investigation also found that the employers had not provided staff with appropriate rest breaks when working more the 1.5 hours over time.
  • Shockingly the employers had also kept false records for several employees.

Enforceable Undertakings were introduced by legislation in 2009, they ensure that the employers investigated by the FWO rectify their mistakes and engage in legal proceedings to ensure that the same mistakes are avoided in the future. Kanodia has rectified their mistakes by;

  • Apologising to all to the affected staff members.
  • They must engage with an independent, specialist workplace relations auditor to further review and report on the company’s compliance with workplace laws for the next three years.
  • They have to confirm with absolute commitment to correctly pay their staff and abide by workplace legislation.

If you are unsure if you are paying your staff under the correct modern award call Employsure on 1300 651 415. We can review your current employment records and business structure and develop policies and procedures to ensure you provide your staff with correct pay, employee written records and administration and workplace legislation. Give your employees peace of mind and ensure that your company is protected from costly claims and investigations, we are ready to take your call today.

*Information sourced via The Fair Work Ombudsman website.

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