Employers hit by underpay demands

The Fair Work Ombudsman (FWO) has recovered $268,000 for 83 underpaid workers in Geelong in the last financial year.
The amount included back pay of $19,000 for the former manager of a business at Barwon Heads and two employees at a Geelong eatery who were underpaid $6600.
Fair Work Ombudsman Natalie James said the Barwon Heads employee was paid a flat weekly salary that failed to cover penalty rates or entitlements for working on public holidays.
She said the business failed to pay the employee more than 300 hours of accumulated annual leave or to keep proper records.
Fair Work inspectors discovered the underpayment when they investigated a request for assistance from the former employee, she said.
In another case, a random audit at a Geelong eatery revealed that two employees were underpaid a total of $6600.
One of the workers, an Indian national employed as a cook on a 457 skilled worker visa, was underpaid $4700, Ms James said.
Both businesses back-paid their employees in full without the need for enforcement action after Fair Work inspectors contacted them, she said.
“Employers must ensure they are aware of the minimum hourly wage rates and penalty rates that apply to their employees.
“Simply putting an employee on a salary or a flat rate does not relieve an employer of the obligation to ensure that all Award entitlements are being met.
“Employers also need to be aware that they must maintain proper employment records and issue pay-slips on a timely basis.”
The Fair Work Ombudsman recovered $22.3 million for 11,613 underpaid workers nationally in 2014/2015, with $7.59 million recovered for 4809 workers in Victoria.