27 October 2009

Workers in Western Sydney underpaid $380,000

Dozens of underpaid workers in Sydney’s Western suburbs have been reimbursed thousands of dollars after investigations by the Fair Work Ombudsman.

NSW inspectors unearthed underpayments of more than $380,000 over the past few months through a combination of routine audits and investigations into complaints from workers.

Significant underpayments were discovered in the manufacturing, cleaning and construction industries.

In one case, a production worker at Rydalmere has been back-paid $15,500 after she did not receive her full entitlements when made redundant.

Fair Work inspectors helped the company to understand its obligations and it voluntarily complied without the need for further action.

Other recoveries include:

• $10,100 for a storeperson at Arndell Park whose employer failed to pay termination entitlements,
• $8300 for a receptionist at Blaxland underpaid as a result of her employer’s financial difficulties,
• $7900 for a manager at Chullora underpaid annual leave and long service leave entitlements,
• $7500 for a Penrith labourer underpaid the minimum hourly rate, weekend rates and overtime,
• $6800 for a Badgery Creek labourer who had been underpaid severance pay,
• $6700 for five Rydalmere cleaners underpaid wages and termination entitlements,
• $6700 for a storeman at Lidcombe underpaid redundancy entitlements,
• $6600 for a cleaner in Castle Hill underpaid allowances and annual leave entitlements,
• $5700 for a sales manager at Lidcombe underpaid redundancy entitlements,
• $2700 for a Chipping Norton labourer underpaid because of the employer’s financial difficulties, and
• $1400 for a young Strathfield sales assistant underpaid the minimum hourly rate and weekend penalty rates.

Fair Work Ombudsman NSW Director Mark Davidson says most of the underpayments were the result of a lack of understanding by employers of their legal obligations, including applicable Awards and pay-scales.

“That’s why the Fair Work Ombudsman places such a strong focus on educating employers and assisting them to understand and comply with workplace laws,” he said.

Mr Davidson says in most cases, the Fair Work Ombudsman does not prosecute employers for inadvertent breaches of workplace laws.

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

“However, employers need to be aware that they can face fines of up $33,000 per breach if we do take matters to court.”

Mr Davidson says employers or employees seeking up-to-date information on wage rates and conditions should visit www.fwo.gov.au or contact the Fair Work Infoline on 13 13 94. Translations are available by calling 13 14 50.

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

“Employers 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.

NOTE: We are unable to identify individual businesses or provide additional information about the cases listed.

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