Are you meeting your wage obligations?
Monday, 10th November 2014, by Loran McDougall
In today's Workplace Bulletin:
The Fair Work Ombudsman (FWO) has recently cracked down on wage underpayments, with employers in Victoria reimbursing underpaid employees over $70,000 following FWO inquiries.
In these cases, Fair Work inspectors contacted the employers to advise them that they were obligated to reimburse the money they owed. Because all employees were reimbursed, no further action was required. Fair Work Ombudsman Natalie James said this was “an example of [the FWO’s] fair and flexible response to employers who admit their errors, rectify any back-payments and put processes in place to ensure further compliance”.
That said, it is important to remember that underpaying an employee is a breach of the employment contract – and the consequences of this can include legal action.
Read on for more information about your minimum wage obligations and what could happen if you don’t meet them.
But just quickly...
New bullying laws and increased penalties reflect the government’s commitment to treating the issue of workplace bullying with the seriousness it deserves.
To help clarify your responsibilities when it comes to bullying, Portner Press has developed a brand-new 50-page eBook, The Bullying Guide – How to identify, prevent and deal with bullying in your workplace.
You can find out more about it here.
Until next time,
Your wage obligations and the
of underpaying employees
by Charles Power
Editor-in-Chief, Employment Law Practical Handbook
Agreed wage and minimum wage
An agreed wage is a rate stipulated in the employment contract. An agreed wage that is less than the minimum wage is a breach of the Fair Work Act 2009 (Cth) (FW Act).
The statutory minimum wage applies to national system employers and employees, and is the minimum amount specified in either the FW Act or an industrial instrument operating under the FW Act, such as:
If a national system employee is not covered by either of these instruments, they are subject to either:
The consequences of underpaying employees
If you pay an employee less than the agreed wage, you will breach the employment contract. The employee may then bring legal action against you, to have you pay:
Employment Law Practical Handbook
Please whitelist the Workplace Bulletin to make sure you get every edition delivered to your inbox.
The information in this email is intended solely for the addressee. Access to this email by anyone else is unauthorised. If you are not the intended recipient, please return the message to the sender and delete it from your records. All content is © 2007-2013 Portner Press Pty Ltd All Rights Reserved.
Queries: For general enquiries, email email@example.com or call 1300 782 911.
Workplace Helpdesk: Paid subscribers to the Employment Law Handbook can ask our experts for advice.
Syndication: To republish a Workplace Bulletin article, please email firstname.lastname@example.org for information.
Workplace Bulletin ISSN 1836-117X
Portner Press Pty Ltd
96-98 Bridport Street
Albert Park VIC 3206
- Alternative Dispute Resolution (ADR)
- Antitrust & Trade Regulation
- Arbitration Agreements
- Breach of Contract
- Business Organizations
- Business Torts
- Civil Remedies
- Civil Rights
- Confidentiality Agreements
- Constitutional Law
- Construction Contracts
- Consumer Protection
- Contract Disputes
- Electronic Discovery
- Energy & Utilities
- Environmental Issues
- General Business
- Government Contracting
- Intellectual Property
- International Trade
- Labor & Employment
- Mergers & Acquisitions
- Non-Compete Agreements
- Products Liability
- Professional Malpractice
- Professional Practice
- Real Estate - Commercial
- Science, Computers, & Technology
- Virtual Currency