Fair Work Infoline: 13 13 94
Media Release
27 Nov 2009
Hobart businesses back-pay workers after Fair
Work Ombudsman intervenes
A
baker’s assistant, a deck-hand on a fishing boat and a transport company yard
hand in Hobart have been back-paid thousands of dollars following recent
investigations by the Fair Work Ombudsman into their pay and conditions.
A
Hobart butcher randomly audited during a recent national campaign targeting
the food services industry was also found to have underpaid five of its staff more
than $47,400 – an average of $9480 each.
Fair Work Ombudsman Nicholas Wilson says the underpayments highlight the
need for employers to regularly seek up-to-date information on wage rates and
conditions.
He says the significant underpayment of the five butchers had occurred because
the employer inadvertently failed to pass on Award wage increases dating back to
2006.
Mr Wilson says the butchers are long-serving employees and the business
immediately voluntarily rectified the issue after inspectors identified the problem
and is now paying their correct entitlements.
He says other recent recoveries for Hobart workers have reinforced the need for
employers to double-check their legal obligations to staff.
They include:
A yard hand at a transport company short-changed $13,800 in wages,
accrued annual leave and long-service leave entitlements when he left the
company,
Seven junior staff (under 21) at a bakery underpaid a total of $6200
because they were receiving less than the applicable Award,
A deck-hand on a fishing boat underpaid $3200 for hours worked, and
The manager of a retail outlet underpaid $2700 because he received a flat
rate of pay regardless of hours worked.
Mr Wilson says his office recovered more than $1 million for 598 workers in
Tasmania last financial year.
Inspectors in Hobart and Launceston finalised 498 complaints and recorded 227
breaches of workplace law.
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Fair Work Infoline: 13 13 94
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Mr Wilson says most underpayments are the result of a lack of understanding by
employers of their legal obligations, including applicable Awards and pay scales.
“That’s why the Fair Work Ombudsman places such a strong focus on educating
employers and assisting them to understand and comply with workplace laws,” he
said.
“We have chosen not to pursue litigation in these cases after working with the
employers to help them voluntarily rectify the issues inspectors have identified.
“In most cases, we do not prosecute employers for accidental or inadvertent
breaches of workplace law.
“However, employers need to be aware they can face fines of up to $33,000 per
breach if the matter goes to court.”
In April this year, the operator of the Caltex petrol station at La Trobe in
Tasmania was fined a total of $241,000 – the second highest penalty achieved by
the Fair Work Ombudsman for any of its prosecutions – for underpaying six of its
employees.
TKM Investments Pty Ltd was fined $201,300 and company director Grania
Kathleen Loone a further $40,260. The Federal Magistrates Court also ordered
that back-pay of $41,000 outstanding to six workers be repaid.
Mr Wilson says any employer or employee seeking up-to-date information on
wage rates and conditions should visit www.fwo.gov.au or contact the Fair Work
Infoline on 13 13 94.
Eleven Best Practice Guides have been developed by the Fair Work Ombudsman
to assist employers make better use of the provisions of the Fair Work Act and
better understand other aspects of workplace laws.
The new guides are on the website and cover work and family, consultation and
co-operation, individual flexibility arrangements, employing young workers,
gender pay equity, small business, workplace privacy, managing
underperformance, effective dispute resolution and improving workplace
productivity in bargaining.
The Fair Work Ombudsman promotes harmonious, productive and co-operative
workplaces. It also monitors compliance and investigates breaches of national
workplace laws.
NOTE – We are unable to identify individual businesses or provide additional
information about the cases listed.
Media inquiries:
Craig Bildstien, 0419 818 484 Email: craig.bildstien@fwo.gov.au
Ryan Pedler: Mob: 0434 365 924; Email: ryan.pedler@fwo.gov.au
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