compliance Archives

Odd bedfellows for some: payroll compliance and the salaried employee

A photo of two people sitting at a desk and only their hands and forearms can be seen. The person on the left is holding a document in his left hand and a pen in his right hand and is using the pen to point at the document. The person on the right is holding a calculator and inputting a function. On the table are a couple of documents, a cheque, a stack of coins, a pile of notes and an open, blank, lined notebook.

Given the extensive regulation that surrounds the minimum entitlements of employees in the Australian industrial relations system, it is still surprising how often businesses fall into the trap of “setting and forgetting” salaries for their staff. annualized salary Recent years have seen several major businesses dragged into the realm of scandal because salaries, however generous,…

What Boards need to know about wage compliance

By Rebecca Goulter

a close up of a keyboard graphic, where one of the keys is bright red with a white gavel icon in the middle.

The introduction of the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 into Federal Parliament late last year is likely to change the way that Boards of Directors respond to reports of non-compliance or ‘wage theft’. Because of their concurrent obligations under the Corporations Act 2001 (Cth) (Corporations Act), this cohort has…

On the record: Understanding the importance of record-keeping compliance

By Lindsay Carroll

a shot of a shelf filled with cream manilla folders and files.

As the conversation around “wage theft” continues in the media and politics, the importance of award compliance remains at the forefront of employers’ minds. Key amongst basic obligations under the law that are sometimes overlooked by employers is record-keeping. A recent decision of the Federal Circuit Court serves as a valuable reminder that failure to…

Victorian Wage Theft Bill 2020 passes, introduces criminal offences for employers

By Lindsay Carroll

a photo of two hands acting as a bowl to carry a bunch of Australian coins

In the middle of a pandemic that has left the nation in economic turmoil and prompted Australia’s first recession since 1991, the Victorian Government has passed the Wage Theft Bill 2020 (Vic) which puts employers around Victoria at risk of criminal prosecution. The Bill creates new criminal offences in Victoria for employers and their officers who “dishonestly” withhold…

No hibernation for the Fair Work Ombudsman: Record penalties secured for wage non-compliance

By Lindsay Carroll

A close up of a referee's face as he blows a metal whistle with his left hand. The referee is wearing a black and white striped shirt and is standing on a grass sports field with a white goal post.

The pandemic hasn’t hindered the Fair Work Ombudsman’s (the FWO) efforts to investigate and prosecute wage non-compliance in the retail and fast food sectors. The FWO has recently secured record penalties against companies that have underpaid their workers and failed to satisfy their recordkeeping obligations. In May, following prosecution by the FWO, the Federal Court…

Senate to undertake national “wage theft” inquiry – Don’t be a case study!

By Rebecca Goulter

A photograph showing a person pulling out the inside of their pocket to reveal their empty pocket.

With “wage theft” being a hot topic politically, Parliaments around Australia have undertaken inquiries into the matter at a State level since 2018. Following inquiries into “wage theft” in Queensland, South Australia and Western Australia, the Federal Opposition has established a similar inquiry to be conducted by the Senate Economics References Committee. Although the State-based…

Ombudsman successful in significantly increasing directors’ penalties

By Lindsay Carroll

A photo showing the hands of two people standing opposite each other from one person's point of view. The person standing opposite is handing two one hundred Australian dollar notes with their right hand, and holding a stack of one hundred and fifty Australian dollar notes in their left hand.

In the current enforcement climate, it is valuable to note a recent case in which the Fair Work Ombudsman (FWO) was successful in obtaining an increase of fines on appeal to almost five times the initial order, for an underpaying company director. In yet another illustration of how the courts are making an example of…

Individuals facing tougher penalties for wage non-compliance

By Sophie Goodall

A torso shot of a man in a grey blazer, light blue collared dress shirt and a blue stripy tie holding up a red rectangle card.

With the Corporations Amendment (Strengthening Protections for Employee Entitlements) Act 2018 (Cth) (the Amendment Act) taking effect last month, now is an apt time to reflect on how officers of a company are subject to hefty penalties for failing to pay employee entitlements adequately when they fall due. The Amendment Act demonstrates stronger policy objectives behind the…

Court fires warning shots at non-compliant employers

By Sophie Goodall

On a plain black background is an arm (from elbow onwards to the fingers) with their index finger pointed diagonally north west - finger is insinuating a warning.

For a long time now – since the Fair Work Ombudsman first started prosecuting employers under the Fair Work Act 2009 (Cth) – it has generally been understood that accidental or inadvertent non-compliance with employment laws will be punished much less severely than deliberately unlawful activity. Those days, however, may be over, as a recent decision from…

The long road to compliance in 2019

By Sophie Goodall

new Labor government industrial relations changes

They say that smooth seas don’t make skilled sailors. Looking ahead to known and predicted changes in the workplace relations space in 2019, HR and People Management professionals can look forward to another eventful year. While the system can be complex, achieving and maintaining compliance with the modern awards and the Fair Work Act 2009 is fundamental…