Fair Work Ombudsman Target Directors



PersonalityWith constant changes, updates and new legislative requirements appearing, keeping within employment laws can seem an impossibly time-consuming task for many businesses. It often proves a mine-field for the novice and a considerable distraction from core business activities for everyone. But it is, nonetheless, critical.

The Fair Work Ombudsman has put all business directors on notice that they may be held personally responsible for the actions of those they trust to effectively manage compliance with the Fair Work laws.

In a recent case, DZ Imports was found to have underpaid two employees by a total of approximately $21,000 and a considerable corporate penalty of $148,000 was imposed on the business by the Fair Work Ombudsman. However, the Ombudsman also imposed a personal fine on the business’s director, Mr Zhu, of $29,700. That’s over $8,000 more than the underpayment originally identified by the Ombudsman.

When it comes to compliance with the Fair Work Act 2009 and Modern Awards, you simply can’t assume that your managers have everything under control. The employment laws and Modern Awards are proving to be extremely challenging and there are no easy shortcuts. Directors must be proactive in managing compliance risk rather than reacting to issues as they arise.

As a Director, some questions you should ask your managers:

  1. Are we using employment contracts for all employees and independent contractor agreements for subcontractors?
  2. Are we paying our employees based on the Modern Award or above? Have you performed the Better Off Overall Test to ensure we are?
  3. Have we implemented and have active workplace policies and procedures which detail employee obligations? Have the employees been trained?
  4. Do we follow the Fair Work laws when it comes to discipline and/or termination?

If ever there was a time for directors to ensure compliance with the Fair Work laws and Modern Awards, it’s now.

All business critically need to ensure they sit within current legislative requirements, ask Moreton Bay HR Solutions to complete a comprehensive HR Compliance Audit. It’s a quick, painless and an effective tool for assessing your situation and ensuring future compliance.

Call Nicole today on 0459 220 516 to discuss further.

About Nicole Allen

Nicoles Photo

Nicole Allen – BM, Dip. Mgt, Dip.HR

Nicole Allen is the Founder and Managing Director of Moreton Bay HR Solutions and MBHRS Pty Ltd. 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, Defence, Heavy Manufacturing, Information Technology, Utilities, Finance and small to large business sectors.

With more than 20 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.