In a recent case before the Federal Court a Sydney cafe that underpaid its staff around $1k has been required to pay the employees what they were due plus superannuation as well as around $14k in penalties.
The cafe in Castle Hill was issued with a notice to pay back staff from the Fair Work Ombudsman and failed to follow the Compliance Notice.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements”, outlined Fair Work Ombudsman Sandra Parker.
The underpayments occurred in 2018 and involved incorrect penalty rates paid to the then junior staff member as well as a lack of notice and annual leave loading payments.
Lessons
“Minor errors in payroll are not uncommon and are provided for. When minor errors are identified they must be rectified in full, with super and interest as appropriate, quickly and completely. Failure to address even minor issues will result in penalties. As was rightly seen in this case those penalties can, and arguably should, dramatically outweigh the value of the breaches”, explains ACAPMAs Elisha Radwanowski.
Here to help
Through the year ACAPMA Employment Professionals are available to assist members via employment@acapma.com.au.
This article is general in nature and covers things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation by calling 1300 160 270 and speaking to one of ACAPMA Employment Professionals its free for members. ACAPMA membership is affordable at only $810 per year for a single site and valuable with sites gaining HR advice support and representation as well as a raft of other benefits and discounts.
Visit: https://acapma.com.au/membership/ to apply for ACAPMA membership.
Elisha Radwanowski BCom (HRM&IR)
ACAPMA
Published with permission from ACAPMA.
Source: https://acapmag.com.au/2022/04/case-review-1k-underpayment-leads-to-14k-in-fines/.
