Fair Work Ombudsman Compliance: FWO Focus for 2021/22
The Fair Work Ombudsman (FWO) recently announced a new priority for the coming financial year. They are turning their focus toward contract cleaning businesses following a series of troubling industry cases. This highlights the growing importance of compliance with Fair Work Ombudsman guidelines in the cleaning sector.
The FWO regularly audits specific sectors to ensure employers pay correct wages and entitlements, aiming to promote full Fair Work Ombudsman compliance. This year, inspectors will deeply investigate the world of contract cleaning to enforce workplace law compliance.
FWO Legal Action in Western Australia
In April 2021, the FWO launched legal proceedings against a cleaning company in regional Western Australia. The regulator alleges the business underpaid 35 employees by more than $110,000 between 2017 and 2018, calling into question the business’s approach to Fair Work Ombudsman compliance.
The FWO also claims the business director provided false or misleading records to inspectors. Notably, these underpayments occurred even after the FWO had previously advised the company on prior wage errors. The alleged underpayments included:
- Minimum-engagement pay and casual loadings.
- Weekend and public holiday penalty rates.
- Overtime and annual leave loading.
- Broken shift and leading hand allowances.
Compliance Risks on the NSW Central Coast
In May 2021, the FWO focused on a cleaning company on the NSW Central Coast. A former part-time employee prompted the investigation after reporting unpaid wages and leave in 2019. Importantly, Fair Work Ombudsman compliance lapses were central to this case.
The FWO issued a compliance notice earlier this year. However, the company failed to act on it. As a result, court proceedings have now commenced. The business must now calculate back-pay and may face penalties of up to $6,660 per breach, showing how falling short of Fair Work compliance can have costly real-world consequences.
Protect Your Business Entitlements
Whether you operate in contract cleaning or another sector, you must pay employees according to their relevant awards. Maintaining proper compliance with Fair Work Ombudsman requirements is the only way to protect your business from litigation and heavy fines.
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