EMPLOYMENT LAW FOR EMPLOYERS

AVOIDING CLAIMS FOR UNDERPAYMENT OF WAGES

In a typical recent case where an employee made a claim for underpayment of wages, a small family owned business was ordered to pay penalties exceeding $22,000 for underpayment of wages.

Despite admitting the breaches and paying the employee the full amount of the underpayment, the Fair Work Ombudsman commenced legal proceedings in the Federal Magistrates' Court seeking penalties in respect of the breaches of the workplace legislation.

What we can do for you

If you are in doubt about awards or working conditions that apply to a new worker, check with us before making an agreement or signing someone to a contract.

Employers should seek advice immediately if they are unsure about the accuracy of their record keeping, or become aware of a potential underpayment claim.  Contact us.

What do you need to check?

There are two main steps for employers to take to ensure no such claims are possible.

The first is to check awards and conditions that apply to the employee's position. This includes rules relating to working on Saturday and Sunday as well as the calculation of allowances and overtime. You may need an employment lawyer's guidance with this.

The second is to make sure your record keeping is accurate and up to date. Not only do all awards in both the Federal and State employment legislation require employers to keep proper records, but employees must have access to those records.

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