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UnderpaymentsJuly 7, 2015
The Fair Work Ombudsman’s annual report from 2013-2014 shows that there were 24,103 employees who made complaints of being underpaid by their employers. This suggests that businesses around the country are failing to meet their employment obligations and are breaching the Fair Work Act.
With recent changes to the minimum wage and modern award rates employers need to be wary of risks associated with non-compliance. The hospitality industry is often in the employment relations spot light, this is because many employees work overtime, unsociable hours and businesses are using manual and out date time sheets. The busy nature of restaurants, cafes, fast food outlets and catering companies etc. suggests also that many small businesses do not have the hours dispensable to working out the correct wages to give to their staff.
What happens to companies who pay their staff incorrectly?
Employers who underpay their staff can be issued costly fines by the Fair Work Ombudsman. They will also have to back pay the staff members who are out of pocket. For a small business these payments can burden a business and for some, it means that they will have to close their doors and cease trading.
As of the 1 July, the minimum wage increased in Australia. All modern award rates increased by 2.5 per cent. The minimum wage is now $17.29 per hour. If you are a business owner and have not calculated these changes into your staffs’ wages, as of the first full pay period, you could be subject to fines from the Fair Work Ombudsman.
To check if you are meeting your workplace obligations you can reach out to Employsure. We make it our duty to provide 24/7 support to all Australian small business owners. Any employment relations issue faced by a business owner can be clearly explained and the best solution found.
If you would like to check if you are paying your staff correctly, if you would like to update your payslip documentation or if you are currently unsure if you are meeting all your employment obligations under the fair work act, call Employsure on 1300 651 415.
Sourced: Hospitality Magazine