FAILING to pass on annual wage increases has left a Dandenong manufacturing company with a $25,800 bill.
Fair Work Ombudsman Natalie James said 25 casual employees weren’t paid their minimum rate, shift loadings and first aid allowance set out in the Manufacturing and Associated Industries and Occupations Award.
One was short-changed $3700.
The employer told Fair Work Inspectors that they believed they had been paying the correct amount and attributed the underpayment to not receiving notification of revised rates.
Ms James said employers should periodically check award provisions and their compliance.
“In our experience, a common cause of underpayment of wages is the failure by employers to pass on annual wage increases,” Ms James said.
“Our online tools and resources can assist employers to determine their applicable modern award, as well as classification and pay rates including base pay rates, allowances, overtime and penalty rates.
“Our focus is on educating employers about their obligations and assisting them to put processes in place to ensure that any errors we find don’t occur again.”
Fair Work uncovered the underpayments while auditing businesses in the Dandenong region.
The ombudsman also recently recouped $13,800 for an apprentice mechanic underpaid his minimum wage and an adult labourer paid a junior apprentice rate in Keysborough.
In Springvale, the ombudsman recouped $8200 for six casual automotive employees who didn’t receive overtime penalties after working more than five days a week.
In Dandenong, Fair Work recovered $5600 for a production line worker who didn’t receive his entitlements while on sick leave and $5100 for a casual factory employee who didn’t receive his annual wage increase.
Visit www.fairwork.gov.au or call 13 13 94.
