The Ombudsman is Ready for 1 July // Are You?

 Friday, July 01, 2016

Changes to Modern Awards and minimum pay rates will take place from July 1 2016.

Fair Work Commission Announces 2.4% Wage Increase

The minimum pay rate under all Awards will increase by 2.4% from 1 July. The national minimum wage will also increase from 1 July to $672.70 per week or $17.70 per hour.

Whether employers are paying strictly in accordance with an Award or a higher flat rate or annual salary, it is important to review whether they are paying employees correctly taking into account the increase (or offsetting the increase against a flat rate of pay or annual salary).

Fair Work Ombudsman Launches Anonymous Reporting Function

Employees who do not want to provide their personal details can now make an anonymous report to the Ombudsman if they suspect they are being underpaid.

The Ombudsman believes this function will see an increase in the number of underpayment complaints including those by employers who are concerned that other businesses may be getting a competitive advantage by engaging in unlawful practices.

Over the past financial year, the Ombudsman has recovered more than $22.3 million in unpaid entitlements. In our experience, most local employers are paying a flat rate above that required by the relevant Award but do not have sufficient documentation in place offsetting overtime, allowances and leaving loading etc. This means employees can bring an underpayment of wages claim for overtime and allowances to be paid in addition to the higher flat rate or annual salary.