The Fair Work Ombudsman ensures that workers receive their correct wages, holidays and entitlements, as per the Fair Work Commission’s decisions around minimum wages, awards and enterprise agreements.
The Fair Work Ombudsman provides information and advice about the minimum pay and entitlements under the modern awards, with resources provided for both employers and employees. It’s inspectors also can investigate possible breaches of the Fair Work Act.
Often these investigations are conducted after claims are made by employees or the general public, however the FWO has been conducting an increasing number of surprise audits this year with some huge penalties handed down to employers not meeting minimum requirements under the Act.
Surprise audits have often been targeting certain industries, such as hospitality and retail, or focussed on areas that may have a high proportion of employees considered to be at risk of underpayment, such as students or migrant workers. While hospitality is clearly under scrutiny, any business may be faced with a surprise audit.
Some examples of recent penalties handed down to non-compliant employers include:
Claiming ignorance of workplace laws is not considered a valid excuse for underpaying workers and whether it is a surprise audit or a disgruntled employee that makes a claim against your business, any investigation that uncovers underpayments could lead to public notices and negative PR, huge impacts to the team culture, not to mention ongoing scrutiny and of course costly penalties.
Most employers genuinely want to do the right thing by their employees and we see many employers inadvertently underpaying their employees due to:
Businesses can avoid the risks associated with a surprise Fair Work investigation by being proactive and undertaking an independent audit of their employee’s pay rates and entitlements. We conduct pay audits for many businesses, reviewing roles to ensure that they are allocated to the correct award, and providing advice around minimum pay and entitlements specific to each role.
Where our audit uncovers any concerning underpayments we work with the employer to appropriately manage this, and support the employer to remedy the situation.
Ensure you are meeting your obligations as an employer and contact us for a compliance check today.