FWO also secures largest penalties in 15-year history
The Fair Work Ombudsman (FWO) has successfully recovered $473 million for nearly 160,000 underpaid workers in Australia during the 2023-24 financial year, as detailed in its newly published annual report.
This is the third-highest annual figure recorded by the FWO, contributing significantly to the total back-payments of $1.5 billion secured for workers over the past three years.
According to the report, more than half of the 2023-24 recoveries originated from large corporate employers, who collectively back-paid over $333 million to approximately 110,000 workers. Since July 2020, the FWO has facilitated a cumulative total of $877 million in back-payments from this sector alone.
Source: Fair Work Ombudsman
Michael Campbell, Acting Fair Work Ombudsman, partly attributed the strong recoveries to the FWO's work in addressing underpayments by large employers.
"The Fair Work Ombudsman has created a firmer culture of accountability across workplaces where Australia’s largest employers, like all others, are expected to prioritise compliance," Campbell said in a statement.
"The success of these efforts means both that workers have money they were owed back in their pockets, making a real difference in their lives, and that there is a level playing field for all those employers doing the right thing."
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Highest penalties in 15-year history
In addition to the financial recoveries, the FWO secured its highest penalties in its 15-year history, with litigations resulting in court-ordered penalties amounting to $21.2 million.
Major litigation outcomes included $10.3 million in penalties against the Commonwealth Bank of Australia and CommSec, as well as over $4 million in penalties imposed on the operators and managers of Din Tai Fung restaurants.
On the other hand, nearly $8 million of the total penalties imposed in completed court cases pertained to employers of migrant workers and visa holders.
Entering Enforceable Undertakings
Throughout the 2023-24 period, the FWO filed 64 new litigations and entered into 15 Enforceable Undertakings with various businesses, resulting in a total of $30.2 million back-paid to employees, alongside commitments to improve compliance practices.
Prominent employers involved in these undertakings included Best & Less, Starbucks Coffee Australia, and Insurance Australia Group Limited.
In its enforcement efforts, the FWO issued 2,574 Compliance Notices, recovering $16.9 million in unpaid wages.
Source: Fair Work Ombudsman
Fair Work Inspectors also issued 760 Infringement Notices for breaches related to record-keeping and pay slips, resulting in total fines of $986,616 — an increase from 626 Infringement Notices and $739,966 in fines from the previous year.
"Our investigations and enforcement actions send a clear message that employers must place a higher priority on ensuring they are meeting their workers' legal entitlements, and that includes by improving their payroll systems and governance, and investing in advice," Campbell said.
"We will continue to collaborate with employer organisations and unions to educate employers and workers. Workplace law compliance can and should be a shared responsibility of the Australian workplace community."