Top 6 Staff Underpayment Cases in Australia
JUNE 04,2023 | BUSINESS | READING TIME: 6 MINUTES | By DYLAN HALLIDAY
WHO IS THE FAIR WORK COMMISSION?
The Fair Work Commission in Australia has various responsibilities, including setting and adjusting the national minimum wage, resolving workplace disputes, approving enterprise agreements, dealing with unfair dismissals, and providing information and education on workplace relations matters. It serves as a regulatory authority overseeing employment practices and ensuring compliance with workplace laws in Australia.
TOP 6 STAFF UNDERPAYMENT CASES IN AUSTRALIA.
In recent years, several high-profile cases of underpayment have been in Australia, particularly in the retail and hospitality industries. Many companies were found to have underpaid their employees by not providing them with the correct minimum wage, penalty rates, or other entitlements. Some of the most notable examples include:
In 2015, an investigation by the Fair Work Ombudsman found that 7-Eleven franchisees had systematically underpaid workers across the country. The company ultimately agreed to pay $44 million in back pay to workers.
In 2018, Woolworths was found to have underpaid 5,700 of its salaried store managers by $300 million over a period of eight years.
In 2019, Coles was found to have underpaid thousands of workers by $20 million over a period of six years.
4. Domino's Pizza.
In 2018, the Fair Work Ombudsman found that Domino's Pizza had underpaid workers by almost $8 million.
5. George Calombaris.
In 2019, celebrity chef George Calombaris was found to have underpaid 162 workers at his Melbourne restaurants by $7.8 million.
Only this month, Aussie mining monster BHP admitted to underpaying almost 30000 workers, dating back to 2010. Looks like $400 million will be its cost to make amends.
These cases demonstrate the widespread problem of underpayment in Australia and the need for stronger enforcement and compliance measures to protect workers' rights. The government has also been taking steps to improve compliance and fairness in the workplace by increasing penalties, strengthening compliance measures and creating a task force to investigate and prosecute underpayment cases.
HOW TO ENSURE PAYROLL COMPLIANCE.
Let's face it; the Australian award system is complex as heck. If even massive companies like those above can get it wrong, it means the challenge of staying Fair Work compliant is enormous for small businesses that simply don't have the same resources.
The best way to ensure your business remains compliant and avoids the penalties of underpayment of employees is to implement a rostering and payroll solution in your operation that includes an award interpretation tool.
Software such as RosterElf is very affordable and will give you peace of mind that your company is payroll compliant at all times. If you would like a free demo of our platform, including our award interpretation engine, drop us a line HERE.
RosterElf is built with you in mind. Our online staff scheduling tool handles all your employee scheduling needs.
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