Regional small businesses falling down on workplace laws

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Two Fair Work Ombudsman campaigns in recent weeks highlight the number of regional small businesses who are struggling to comply with workplace laws.

This week the FWO released the results of its proactive education and compliance campaign targeting Tasmania’s south and east coasts, finding almost a third of audited businesses to be non-compliant with workplace laws This follows a recent FWO campaign that found that half of the businesses in South Australia’s Barossa Valley are committing at least one breach of workplace laws.

In Tasmania Fair Work inspectors issued two formal cautions, two infringement notices (on-the-spot fines) and one compliance notice during the campaign.

In one matter, a motel was found to have failed to meet the minimum hourly rate required under the relevant award in respect of four of its workers – half of its total workforce.

The employer was issued with a compliance notice and a total of $3579 was back-paid to the workers in accordance with the notice.

The South Australian campaign saw FWO inspectors assessed the time-and-wages records of 70 businesses in the Barossa and Two Wells/Gawler regions, focusing on towns including Nuriootpa, Williamstown, Angaston and Lyndoch.

Inspectors found that 50 per cent of the businesses were not complying with all of their obligations under Australia’s workplace laws.

The campaign found that 30 per cent of businesses were not paying their employees correctly, while 31 per cent were not meeting pay slip and record-keeping requirements.

In response to the breaches, the Fair Work Ombudsman issued seven infringement notices (on-the-spot fines) and three formal cautions.

A total of $11,438 was recovered for 12 employees.

Fair Work Ombudsman Natalie James said it was just not good enough for half of the businesses across the regions to be breaching their obligations.

“I urge all employers to make use of the wealth of information and resources we have available at www.fairwork.gov.au to help them understand workplace requirements.

“We are here to help any business who needs assistance to ensure they are complying with the law.”

In one matter, a small retail establishment in Angaston was issued with a formal caution after inspectors found it was paying a casual employee a flat hourly rate of $20, which was an underpayment of $3.74 per hour.

When inspectors asked for records, the employer said that while they kept time-and-wage books, they did not provide pay slips. The employer was educated about pay slips and minimum wage requirements and cooperated with the Fair Work Ombudsman to back-pay the workers in full.

Ms James says it is imperative for employers to make sure they are fully aware of their workplace obligations.

“Ignorance is no excuse when it comes to employers making sure they are doing the right thing by their workers,” Ms James said. “Failing to meet workplace obligations can lead to fines, hefty back-payment bills and, in the most serious cases, litigation in court.

“With a full range of free resources and advice available on our website, businesses have no excuses for non-compliance. I encourage employers to visit our website to register for a free ‘My Account’ to receive tailored information on workplace laws, and to contact us if they require assistance.”

Ms James says non-compliant businesses in the region are now on notice that future breaches will not be tolerated.

“My agency will be checking in on non-compliant businesses to ensure they have rectified any issues and have processes in place to ensure compliance in the future,” Ms James said.