Are you underpaying your employees?

underpaidMany of our clients are surprised to discover they are unknowingly underpaying their employees. More than a quarter of businesses audited during an investigation by the Fair Work Ombudsman were found to have breached their wage and award requirement mainly with respect to the incorrect payment of the following Award provisions:

  • Penalty rates;
  • Paying annual ‘flat rates’ that do not meet the Award;
  • Overtime (non payment or assuming salary includes payment of working additional hours);
  • Failure to comply with payslip requirements;
  • Incorrect classification of employees under the Award; and/or
  • Not paying annual leave loading in the right way.

A common misconception is that paying ‘above award’ rates will make an employer exempt from Award obligations. This is simply not true, as Awards cover more than just pay rates eg: hours of work etc. An employer can possibly ‘annualise’ an employee’s salary and enter into an off-setting arrangement if the payment to the employees is at least the same or more compared to if they were paid precisely in accordance with the Award. Our advice is to review the specific Award annually and be up to date with any amendments to the said Award.

Unfortunately, a breach of Award conditions can attract penalties of up to $51 000 for a corporate employer and individuals involved such as managers, can also be penalised up to $10 200 for each breach. Compliance is definitely the cheaper option!

To ensure compliance then simply contact Nicole today on 0459 220 516.

Nicoles Photo                 

Nicole Allen – Managing Director

B.Mgt, Dip. Mgt, Dip.HR

Nicole Allen is the Founder and Managing Director of Moreton Bay HR Solutions. In 1996, Nicole Allen commenced a successful career in operational and strategic human resources, recruitment, management and communications field. She has held some significant positions ranging from Human Resources Generalist to Group HR Manager in Mining and Resources, Uranium, Oil & Gas, Defense, Heavy Manufacturing, Information Technology, Utilities, Finance and small to large business sectors.

With more than 18 years’ experience in the Human Resources Management and communications field, she brings a diverse and unique HR and communications expertise and knowledge. She is a strong believer in employee communication as being the biggest key to business success and has a consultative approach which has underpinned her successful development of HR programs which improve the culture and behaviour of employees.

Amongst Nicole’s list of Qualifications, she holds a Bachelor of Management majoring in Communications, Diploma in Management and a Diploma in Human Resources.

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