AUSTRALIA HAS A WAGE THEFT EPIDEMIC: INSURANCE FOR WAGE THEFT FINES — WILL THAT TOO SOON BE PROHIBITIED

What is Wage Theft?

Why is Wage Theft so prevalent?

What is being done to address the issue?

Will employers be able to insure themselves against wage theft in the future?

What can employers do?

  • understand the award coverage of all employees — including whether employees are covered by a modern award or whether they are award free — especially in light of the recent amendments made to the Miscellaneous Award 2020, effectively extending the scope of the Miscellaneous Award;
  • if an employee is covered by a modern award, consider the recent annualised salary changes and undertake regular reviews of annualised salary arrangements to ensure that employees are receiving at least the award minimum taking into account their actual hours of work and the projected hours used when setting rates of pay;
  • undertake regular periodic reviews of modern award classifications and job descriptions and pay rates. Given the 1.75% increase to minimum rates of pay in Group 2 Awards as at 1 November 2020 (see our October article), it is therefore timely, for businesses to conduct an audit to ensure that workers on annual salary arrangements are being paid sufficiently and rates of pay align with the award increase of 1.75%;
  • ensure that all employment contracts are up to date and attend to any necessary amendments; and
  • keep accurate records, including time and wages records such as timesheets and leave records — this documentary evidence will be critical if you have the misfortune of being investigated by the FWO.

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Aiden Dallas

Aiden Dallas

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As a freelance copywriter I love the flexibility of working anywhere across the globe and all the opportunities that come with it.