This is a timely reminder to all businesses of the need to have up-to-date governance and payroll systems to prevent a hefty bill for back payments of wages that have not been budgeted for.

When one residential aged care facility, with operations in South Australia, Victoria, NSW and Tasmania, reviewed its pay practice in November last year, it identified that 4,850 current and former staff members had been underpaid $4.782 million for overtime worked between 1 November 2008 and 30 November 2014.

This is a timely reminder to all businesses of the need to have up-to-date governance and payroll systems to prevent a hefty bill for back payments of wages that have not been budgeted for.  

Fair Work Ombudsman Natalie James says her Agency does not believe the underpayments were deliberate, but it is concerned about the significance of the breaches in such a large company.

These cases could have been avoided if the business kept informed with the latest updates to modern awards or they had asked an expert in workplace relations.  

Members of the NSW Business Chamber receive updates to the applicable modern awards and have access to a dedicated Workplace Advice Line, providing them with the resources to check employee entitlements and clarify matters relating to workplace relations. 

Speak to one of the team today to ensure you don’t face prosecution later.  Call 13 26 96 


 
Source:  Fair Work Ombudsman – May 2015