About 50 businesses face surprise visits from FWO
About 50 businesses in Australia have been inspected by the Fair Work Ombudsman (FWO) to ensure their compliance with record-keeping obligations.
Michael Campbell, acting Fair Work Ombudsman, said the inspected businesses have been engaging with vulnerable employees, such as migrant and young workers, who can be vulnerable to exploitation.
"Workplace breaches that involve migrant workers and young workers can be particularly serious. We find these workers are often unaware of their workplace rights or unwilling to speak up if something seems wrong," Campbell said in a statement.
Inspectors from the FWO checked for time and wage records, as well as employee payslips. They also ensured that the employees were provided with the Fair Work Information Statement and Casual Employee Information Statement.
According to Campbell, lack of records or poorly maintained records often signal workplace breaches, such as underpayments.
"Record-keeping is the bedrock of compliance and must be taken seriously," the acting Fair Work Ombudsman said.
"Pay slips provide employees with the clarity they need about their pay, and accurate record-keeping makes it easier to keep track of employee details, identify payroll mistakes and keep a business running efficiently."
The inspections, which concluded on Friday, were carried out in the central business districts in Hobart, Adelaide, Melbourne, Sydney, Perth, and Cairns.
Among the businesses that were inspected were retailers, such as mobile phone repair shops, discount stores, independent butcher shops and bakeries, speciality grocery stores, florists, and dry cleaners.
Hair and beauty salons, beauty supply shops, and car wash businesses also became subjects of the checks.
According to the FWO, the inspections were based on anonymous reports and enquiries, as well as previous investigations into businesses that were conducted by the FWO.
"Fair Work Inspectors have handed out Infringement Notices – which are similar to on-the-spot fines – when employers were not meeting their legal obligations."
Infringement Notices can be issued to an employer with a maximum of $1,878 per contravention for an individual and $9,390 per contravention for a body corporate.
"We much prefer that employers get it right in the first place," Campbell said. "Employers should access our free tools and resources to ensure they're meeting their obligations, or contact the FWO directly for free advice."
In 2023–24, the FWO issued 760 Infringement Notices, with penalties paid reaching $986,616, up from the previous year's 626 notices that resulted in $736,966 in penalties paid.
In Australia, around 400,000 Australians or 19% of workers aged under 25 are underpaid for their age, according to the Australian Council of Trade Unions (ACTU).
Its latest analysis of government data showed about 30% of workers in casual work are paid at least $1.50 an hour less than the applicable junior rate. This can lead to underpayments of up to $1,560 for someone working 20 hours a week.
"Wage theft is a hidden epidemic that is worsening people's cost-of-living pressures, and young workers are bearing the brunt of it," said ACTU Secretary Sally McManus in a statement.
McManus noted that younger people, especially casual workers, are usual targets of wage theft because they tend to have less power in the workplace.
The Australian government criminalised wage theft this year, meaning the intentional act of underpaying an employee can lead to massive civil penalty amounts for both individuals and organisations.
"The Albanese Government made it easier for wage theft victims to seek justice, but unions recognise there’s more to be done. Young people are tired of being underpaid and undervalued at work, so it's a positive sign that increasing numbers of young workers are joining their unions," she said.
