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Underpayments hit the Outback

UnderpaymentsNovember 9, 2015

Underpayments hit the Outback (Last Updated On: November 9, 2015)

Two Alice Springs restaurants have been forced to back pay dozens of workers almost $25,000 following investigations from the Fair Work Ombudsman (FWO).

The FWO found waiters and kitchen staff at one restaurant were underpaid $15,000 after being incorrectly paid their minimum hourly rates and penalty rates for weekend and night work.  They found the underpayments occurred due to the restaurant receiving incorrect advice from an accountant on how to calculate wages. The largest individual underpayment was $6,600.

The second restaurant accidentally underpaid its employees almost $10,000 due to classing their employees under the incorrect modern award.

The underpayments were identified during a recent FWO compliance campaign in Alice Springs. Overall the campaign has resulted in more than $70,000 being returned to 216 employees from 22 separate businesses.

It is important for employers to be aware of their staff’s correct modern award and entitlements, otherwise they could face large wage bills they have not budgeted for. If you would like to review your current wage rates or check you are fully abiding by the Fair Work Act, call Employsure today on 1300 651 415.


Sourced via the Fair Work Ombudsman 

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