Unpaid Wage Recovery Increased 3 Fold This Financial Year
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The Fair Work Ombudsman’s 2019/20 Annual Report has shown that more than $123 million in unpaid wages were recovered in the past financial year, at a staggering three times that of the previous year.
In addition, the Ombudsman issued more than 950 compliance notices, more than triple the number of compliance notices than in the year previous.
Repayments included:
$90 million in underpayments that were self-reported
$57 million in backpay following investigation and ‘enforceable undertakings’
While the spotlight has been on big businesses failing to properly record hours; largely due to payroll systems incapable of correctly applying award conditions, small businesses were not without fault. SMEs in the hospitality sector accounted for 50 per cent of legal action initiated by the ombudsman over the last financial year.
For many SMEs, the challenge often lies in misunderstanding awards and a lack of dedicated employment relations resources. While many small to medium employers may not have adequate resources to ensure wage compliance, it does not remove the responsibility on employers to ensure that their staff are being paid correctly.
There is more pressure than ever being placed on businesses to pay their staff correctly. As of 1 July 2020there were 72 matters before the courts with Fair Work Ombudsman Sandra Parker stating “We will continue our intelligence-led, priority-driven work targeting high-risk sectors and practices, protecting vulnerable workers and educating both employers and employees across Australian workplaces as they recover from the pandemic in the year ahead.”
Is your business paying its staff correctly? If you can’t confidently answer this question now is the time to act. Infinity HR can help you conduct a wage compliance audit and provide recommendations to ensure compliance. Contact or team at info@infinityhr.com.au or phone 0400 489 743.
References:
More than $123 million recovered for workers