Employers hit with $37,000 in backpay

Wednesday 30 August, 2017 | By: Jason Wales, HR Adviser | Tags: backpay, Fair Work

Two small businesses have been forced to pay $37,000 in back-pay after the Fair Work Ombudsman found they were underpaying their staff.

A barista who worked at a Campbellfield cafe was back-paid $29,061 after discovering they had been paid up to $5 an hour less than legally required for three years. The worker was paid between $17 and $19 an hour instead of $23.74 and did not receive penalty rates on weekends and public holidays, the Fair Work Ombudsman said.

barista 

A tradie in Reservoir was reimbursed $8,595 after his employer failed to pay him any annual and long service leave entitlements when he resigned.

Fair Work Ombudsman Natalie James has put both businesses on notice and says any future workplace law breaches could lead to a lawsuit. Fair Work fines can be as high as $54,000 per contravention, even for small or medium employers.

Paying correctly? Click here for our free Fair Work guide.


Ms James said workers also needed to be better informed about their entitlements.

"These breaches resulted from a lack of understanding of workplace laws on the part of the two employers, highlighting the importance of employers getting informed about their workplace obligations," Ms James said.

We protect businesses from Fair Work claims. If you're not 100% confident, call CCIQ on 1300 731 988 for a private discussion or download our free guide for employers.

 

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