Costly Wage Errors

by Feb 16, 2022All Posts, Industrial Relations

Across Australia, the Fair Work Ombudsman has been conducting surprise audits investigating employee wages and entitlements, with a priority focus upon sectors of (but not limited to), hospitality, retail, horticulture, and contract cleaning.

The underpayment of employees can be a costly mistake for businesses as the repercussions can impact reputation, incur penalty of a contrition payment or fine, and requires back payment of employee wages and superannuation inclusive of accrued interest.

Fair Work aims to improve workplace equality through business compliance of ‘best practice’, with a focus upon areas of concern such as the employment of young persons, parental leave, conflict and dispute resolution, underperformance management, and dismissal. This also includes meeting National Employment Standards and applicable industry legal obligations.

If you have any concerns surrounding these issues, do not refrain from contacting the AHR Team, as Human Resource and Industrial Relation matters are our expertise.

In accordance with Fair Work, the penalty for a breach of an Australian workplace law by a small business can exceed * $133,000 for individuals and $666,000 for body corporates.

Often neglected, but damaging to small businesses are Record-Keeping Breaches which can incur up to $13,320 individually and $66,600 for a corporation.

To avoid such sanctions, it is crucial that businesses implement procedures that comply with Fair Work best practice, introducing thorough and detailed systems to manage relations upon initiation of employment.

The AHR Team has helped many businesses to implement New Hire and Onboarding Processes that ensure correctly allocated awards and wage levels for new employees. We can further assist businesses to comply with the Fair Work obligations by collaboratively developing business-specific record keeping and auditing systems to ensure wage increases are implemented in accordance with employee annual reviews, acquired and progressive skillsets, and ongoing performance.

Call the AHR Team today on 1800 577 515 to discuss your business-specific needs and allow us to help you in remaining compliant as a fair and law-abiding workplace.


*Penalty amounts are subject to change. Current details can be found at


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