12 October 2009

Central Coast workers back-paid $256,000

The national pay protector has recovered $256,000 for 100 underpaid workers at Central Coast businesses over the past 12 months.

Inspectors at the Fair Work Ombudsman’s Newcastle office discovered the underpayments through a combination of routine audits and investigations into complaints by workers.

The biggest underpayments were recovered in the services, hospitality, and retail industries.

Recoveries include:

• $13,155 for a financial services worker at The Entrance who had been underpaid overtime, penalty rates and allowances,
• $12,865 for a social services worker at The Entrance who had been underpaid wages in lieu of notice and severance pay on termination,
• $11,676 for a transport industry worker in Gosford who had been underpaid annual leave entitlements and pay in lieu of notice,
• $10,744 for a manufacturing industry worker near Wyong who was underpaid redundancy entitlements,
• $8025 for a Wyong tradesman who had been underpaid his minimum hourly rate and annual leave entitlements,
• $10,622 for a Gosford retail industry worker who had been underpaid annual leave and long service leave entitlements, and
• $9600 and $6080 in redundancy entitlements for two Gosford workers who had been underpaid redundancy entitlements due to their employer’s lack of awareness of workplace laws.

Fair Work inspectors at Newcastle cover the Hunter Valley, Central Coast and Port Macquarie regions.

Common non-compliance issues identified include underpayment of workers’ minimum hourly rates, failure to pay terminated workers’ entitlements such as accrued annual leave and pay in lieu of notice, failure to pay workers full penalties for overtime and weekend work and failure to keep proper employment records.

The Fair Work Ombudsman’s Newcastle office has recovered $950,000 for about 400 underpaid workers in the past 12 months.

This includes: $409,000 for Newcastle-area workers, $60,000 for Cessnock-area workers, $21,000 for Singleton-area workers, $58,000 for Muswellbrook/Upper Hunter workers, $102,000 for Great Lakes/Taree workers and $34,000 for Gloucester/Port Macquarie workers.

Fair Work Ombudsman NSW Director Mark Davidson says educating and assisting employers is a key part of the Fair Work Ombudsman’s role.

“In most cases, we do not prosecute employers for accidental breaches of workplace laws,” Mr Davidson said.

“Most of the $70 million we have recovered for 54,000 workers throughout Australia over the past two years was recouped without resorting to litigation.

“We prefer to educate employers and assist them to voluntarily rectify any issues we identify, but we won’t hesitate to prosecute employers who refuse to co-operate or where we find serious breaches.”

Mr Davidson says employers should regularly contact the Fair Work Infoline on 13 13 94 or visit www.fwo.gov.au to ensure they have the most up-to-date information on the wage rates and conditions that apply to their workers.

“The Fair Work Ombudsman’s website includes information and templates to help employers better manage employment records and payslips,” he said.

“Employers also need to be aware that under Commonwealth workplace laws they must keep accurate time, wages, annual leave and other employment records and issue sufficiently detailed payslips.”

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.

Any employers or employees seeking assistance should contact the Fair Work Infoline on 13 13 94 or visit www.fwo.gov.au. For translations call 13 14 50.

Media inquiries:

Craig Bildstien, Director Media & Stakeholder Relations,
0419 818 484
craig.bildstien@fwo.gov.au

Ryan Pedler, Media & Stakeholder Relations Senior Adviser
(03) 9954 2561, 0434 365 924
ryan.pedler@fwo.gov.au