Underpaying your staff could cost you more than you can afford

Posted on 27 January 2012

Don’t be caught out by the Fair Work Ombudsman (FWO).

The FWO has conducted a number of recent investigations involving retailers who have underpaid their staff. The outcome of the investigation was damaging to hundreds of retailers who have been ordered to back-pay their staff totaling just over half a million dollars. The investigation could not come at a worse time for the retail sector which continues to struggle due to poor sales and an overall slow market.

According to a report released by the FWO, random audits of about 2000 stores were conducted across Australia which found more than a quarter of retailers had breached wage requirements. The FWO further found that retailers had breached these laws due to being misinformed about their obligations.

This should be a reminder to all employers regardless of what industry you are in, we suggest that you make yourself aware of the Award system to ensure that you are not underpaying your staff. Neglecting to pay your staff the correct wage could result in serious breaches where the FWO could order your business to back pay your staff and you could also incur a hefty fine for the breach.

If you are unsure about your obligations, contact us now to arrange a meeting to learn more about the Award system and to ensure your business is not at risk of breaching any workplace laws.