Employers to face higher penalties from 1 July 2017

 Wednesday, May 31, 2017

Employers to face higher penalties from 1 July 2017

Cosgriff Lawyers have assisted a number of local employers remedy breaches of the employment laws before a penalty is imposed by the Fair Work Ombudsman. More often than not the breaches relate to underpayment of wages where the employer is paying a flat rate of pay or annual salary and has not properly offset requirements of the relevant Modern Award. Unfortunately the employer is usually paying above the Award but strictly speaking will nonetheless be in breach as appropriate documents are not in place.

Employers are strongly encouraged to seek advice well prior to 1 July 2017 in order to resolve any compliance issues, when it is likely all wages under Modern Awards will increase.

From 1 July 2017 employers who breach their obligations under the Fair Work Act 2009 (Cth) (the Act) will face higher maximum penalties which increase from $54,000 to $63,000 for a body corporate and from $10,800 to $12,600 for an individual.

Possible breaches of the Act include underpayment of wages, non-payment of entitlements, contravention of a term of a Modern Award or National Employment Standards, among other things.

For more information please contact Skye Engwerda or Zoe Broadbent.