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 Ombudsman makes bosses pay for errors 

Ombudsman makes bosses pay for errors

26 Oct, 2009 08:31 AM
More than $837,000 was recovered for Canberra workers in the past financial year after intervention by the Fair Work Ombudsman.

The ombudsman found 3817 ACT workers had been underpaid, mostly because employers had a lack of understanding of their legal obligations, including applicable awards and pay-scales.

Significant underpayments were identified in the transport, wholesale and retail industries.

Fair Work Ombudsman inspectors finalised 769 complaints and recorded 261 breaches of workplace law in the ACT.

The underpayments were identified by routine audits, targeted investigations and complaints from workers.

A manager who left a Canberra transport business was not paid his accrued annual and long-service leave entitlements.

After Fair Work inspectors contacted the company, the man was promptly paid more than $27,000.

Other recoveries included $25,000 to a clerk at a wholesale company who was underpaid minimum shift and night penalty rates and $15,968 for a white-collar employee underpaid accrued annual leave entitlements on termination of his employment.

There were also recoveries of $13,000 each for two workers at a transport business who were underpaid the hourly rate and for hours worked; $12,603 for a marketing manager underpaid the minimum hourly rate and various other entitlements over seven months; $8967 for a manufacturing industry worker underpaid accrued annual leave on termination; $7714 for a cleaner underpaid overtime, weekend penalty rates and other entitlements; and $5766 for a construction worker who had not been paid two weeks' wages in lieu of notice and accrued annual leave on termination.

Also last financial year, the ombudsman prosecuted Aussie Junk, which operated two recycling depots in Canberra. The ombudsman alleged the company underpaid some Canberra staff about $280,000.

The company was subsequently placed into liquidation. The ombudsman is also prosecuting the company's sole director, Dennis Richter.

The ombudsman's Canberra regional manager, Jeff Beaver, said the ombudsman placed a strong focus on educating employers and assisting them to understand and comply with workplace laws.

He said in most cases, the ombudsman did not prosecute employers for inadvertent breaches of workplace laws.

''However, employers need to be aware they can face fines of up to $33,000 per breach if we do take matters to court.''

Employers must be aware that under Commonwealth workplace laws, they must keep accurate time, wages, annual leave and other employment records and issue sufficiently detailed payslips.

Most of the $70million recovered by the ombudsman for 54,000 workers throughout Australia over the past two years had been recouped without litigation.

For information on wage rates and conditions, visit fwo.gov.au or phone 131394.

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comments


Date: Newest first | Oldest first
It is not a case of bosses not sure of workers' entitlements, it is a case of if the bosses can get away with not paying they will. It happens in my work place all the time.
Posted by charlie, 26/10/2009 7:33:02 PM

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