Businesses need to be aware that the new Fair Work IR system is here NOW, and the law requires businesses to comply with all their new obligations under the system.
Fair Work Inspectors will visit over 10,000 small businesses in NSW this year.
"Ignorance is no excuse" said Fair Work Ombudsman Nicholas Wilson, "but we recognise that in order to comply, we must help employers understand the law and the obligations it imposes on them".
If a business is not already complying with the new laws, they may be at risk of disruptive, time-costly interaction with the Fair Work Ombudsman, should they visit.
Employers will have the chance to voluntarily rectify any non-compliance issues, however if businesses do not cooperate they could be prosecuted.
For example
In an upcoming case in Northern NSW, the Fair Work Ombudsman has launched a prosecution against the operators of a motel for allegedly failing to provide inspectors with staff employment records.
The business and the company director-manager are alleged to have committed two breaches of the workplace laws.
The maximum penalty per breach is $33,000 for the company and $6,000 for the company-director.
Update - recent Ombudsman campaigns
The Ombudsman also recently audited 86 hair and beauty salons across NSW and the ACT, and found that 39% were non-compliant, including breaches relating to payslips, time-and-wages records and monetary contraventions.
Three salons were found to have underpaid 11 staff more than $86,000
Recent reimbursements
In December, a large hospitality group in Sydney was ordered to back pay staff after an investigation revealed they had been underpaying staff.
The company signed its employees to workplace agreements in 2007 which paid slightly above the minimum hourly rate at that time - but which did not provide for future increases.
The oversight resulted in the workers being paid less than the minimum hourly rate after minimum pay rates rose on October 1 2007. The largest underpayment of a single worker was $3,642 and the campaign ultimately recouped $1.1 million for 3,863 employees.
Even if a business has made a genuine mistake and does not receive a financial penalty, the cost to rectify the situation could be high.
NSW Business Chamber specialises in workplace relations, HR and industrial matters, and can provide sound, trusted workplace advice for employers, to help businesses comply with the new laws, and prevent potentially costly oversights.
Call 13 26 96
Issued by NSW Business Chamber 3rd February 2010
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About Me
- Trojan Corporate
- Trojan Corporate PTY LTD is a corporate compliance consultancy business formed in 1999 by Justin McGurgan to provide specialist management and consulting services to hospitality leisure industry. Trojan has a team of professional consultants and trainers dedicated to the development of effective and profitable solutions to the hospitality, tourism and retail industry.The team has a committment to outstanding service to each and every client ensuring responsiveness, accessibility, involvement and accountability.The Trojan team members have a wealth of knowledge and experience to offer our many and varied clients.