Common Wage Theft Errors
It is an employer’s responsibility to seek advice if they don’t have the internal capability to pay their employees correctly, and to proactively address accidental underpayments by reimbursing those impacted.
In recent years, greater focus has been placed on prosecuting businesses that underpay their staff the appropriate wages and conditions that apply under Awards, Enterprise Agreements, and other provisions required under the Fair Work Act. Common errors include:
48%
Under or overpaying an employee
44%
Delayed payment
28%
Incorrect classification of employees
24%
Not making superannuation payments
Source: HR Software Rippling research referenced in HCA, which found 59% of Australian firms made a payroll error in the past 24 months.
Enquire about Wage Theft
๏ปฟIs your business at risk of facing prosecution for Wage Theft?
We have helped many employers identify incorrect payments that they weren’t aware of, that may have had financial and reputational consequences if left undetected.
Bayside Group is offering a Free Underpayment Risk Assessment of your organisation to help identify potential exposure to an underpayment claim.
Questions to help you identify if you are potentially at risk of Wage Theft:
What are the consequences of wage theft?
๏ปฟThose employers who willingly choose to underpay their employees may face criminal sanctions for such actions. Across Australia, businesses ranging from large multinationals to small business owners have faced prosecution for breaches of the Fair Work Act.
Organisational Charges
Companies found guilty of intentional wage theft, can face penalties of
either three times the amount of the underpayment or $7.825 million.
Individual Fines
An individual found guilty of intentional wage theft, can face penalties of up to 10 years in prison, of either three times the amount of the underpayment or $1.565 million.
Who's at Risk?
Small businesses ranging from restaurants, fast food outlets, cafes have been fined. Builders, electrical services, baby retail business, passenger transport and cleaning businesses currently face prosecution.
Recent Prosecutions
Recent prosecutions include a leading car dealership ($16M), World Vision ($6M), a restaurant chain ($4M), a dietitian ($7,992), 21 restaurants, fast food outlets and cafes on the Sunshine Coast ($223,107) and 38 food outlets in Perth ($769,475).
ER and IR advice, support and solutions
Learn more about our workplace relations services?
Our expert Workplace Relations team assists businesses to stay compliant and proactively manage their people. This means minimising your employment risk if employment issues arise, saving you time, worry and costs. ๏ปฟ