When an employee has a change in their employing entity, such as when a business is on-sold, it can be difficult to understand what happens to an employee’s existing employment entitlements. This article aims to summarise how these entitlements are treated when a transfer of a business occurs.
For the first time, the Fair Work Ombudsman is taking legal action against a franchisor (in the hospitality and restaurant industry) for failing to ensure compliance by its franchisees. The franchisor is accused of being responsible for the non-compliance of eight franchise-operated outlets and the underpayment of 9 workers, amounting to a total of $32,321.
Whistleblowing has become an important consideration for not only large businesses, but businesses of all sizes. Whistleblower laws were brought in under the Corporations Act 2001 (and other laws) and created a legal obligation for many larger businesses to have a whistleblower policy. However, the benefits of utilising a whistleblower policy, as a means to receive any concerns or complaints, goes much beyond merely complying with the law.
The explanatory memorandum for the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 provides the following overview:
The first criminal charges relating to wage theft have been laid by the Wage Inspectorate Victoria (WIV), marking a significant point in the fight against employee underpayments.
Payroll compliance was thrown into the spotlight a number of years ago, when it was uncovered that many well-known Australian brands had underpaid their staff by millions. Since then, there has been a steady flow of organisations from various industries who have been found to have underpaid their employees. The Fair Work Ombudsman (FWO) responded by increasing their use of detection and enforcement measures and targeting areas that were shown to have higher levels of non-compliance.
As in the Woolworths case, where a salaried employee is mistakenly believed to be an ‘award free’ manager, there is a potential for underpayments. Find out why and what you can do about it.
Commission-only employee gets $28,000 in backpay.
Our Answer – whilst in some situations engaging employees on a commission-only basis can be achieved practically, the main issue is that the employee can never receive less than their legislated minimum entitlements, including entitlements to minimum hourly rates.
Business risks keep climbing as awareness grows of adverse action claims under the Fair Work Act 2009 (FWA).
Recently a company was making an employee redundant due to a restructure of the business. You think this is a straightforward exercise? But for an Award or Agreement covered employee you have to get the formal consultation process right! Unfortunately the company failed to do so and had to go to the trouble of running an unfair dismissal case. In this article we explain the ‘genuine redundancy’ requirements, and the formal steps the employer has to follow to avoid an unfair dismissal case.
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