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Minimum WageNovember 15, 2016
A recent investigation by Fairfax Media has shown more than 5,500 workers each year speak up after being paid cash-in-hand payments. The concern is that these workers are being paid less than the correct Award wages which could result in further investigations conducted by the Fair Work Commission.
The Australian Taxation Office (ATO) estimates about 1.6 million businesses mostly ‘micro’ and small businesses operating across 233 industries are part of the illegal cash payments.
The ATO has in recent years increased the number of audits they conduct on small businesses in high risk industries. Those being businesses they suspect are most likely to be participating in the illegal cash-in-hand payments to workers. These include cafes and restaurants, carpentry and electrical services, hair, beauty and nail specialists, building trades, road freight and waste skip operators and cleaners.
The ATO continues to conduct country-wide visits including:
There are some circumstances when paying workers in cash is acceptable. However, if you are paying your employees’ wages in cash, you should:
The Fair Work Commission regularly checks if employers are paying their workers the correct wage, this includes minimum hourly rates, penalty rates, and overtime.
As Australia’s leading workplace specialists, we can equip you with the safeguards to pay your employees correctly and meet other workplace obligations. Employsure makes it easy for employers to follow and understand the Fair Work Act 2009. Contact Employsure on 1300 651 415 to speak with a specialist.