Recovery stems from over 100 inspections, conciliated complaints in past 12 months
The Private Sector Labour Relations (PSLR) in Western Australia has recovered $548,817 of underpayments in the 2023-24 financial year.
This includes more than $150,000 underpayments recovered by PSLR's industrial inspectors following 102 inspections in the last 12 months, according to the state government's media release.
It also includes more than $300,000 recovered for employees from conciliated complaints, where a third were related to long service leave entitlements.
In the 2022-23 financial year, the PSLR recovered more than $660,000 in unpaid wages and entitlements after a total of 258 workplace investigations.
In Western Australia, many private sector employers and employees are covered by the WA Long Service Leave Act 1958. It includes employees including full time, part time, casual and seasonal ones, according to the state government.
Under the law, eligible employees may have an entitlement to payment of long service leave when their employment ends due to resignation, dismissal, redundancy, or death.
Underpayment cases in Australia
The data comes amid growing cases of underpayments across various industries in Australia. In the tertiary education sector, estimates from the National Tertiary Education Union revealed that wage theft among Australian universities could surpass $382 million.
Matt Loop, VP and Head of Asia at Rippling, previously told HRD that underpayments lead to "potentially more severe and long-lasting" ramifications for employers.
"Underpayments don't just erode employee trust by signalling an undervaluation of contributions, but it also leads to morale decline, dissatisfaction, and disengagement among staff," he said. "Individuals will often feel like their employer does not care about them - or their wellbeing - as much as it should.
