Australia: Underpayment of Workers Leads to Significant New Costs and Penalties

A global technology firm recently entered an Enforceable Undertaking (EU) with the Fair Work Ombudsman in Australia to back pay 1,647 Australian workers found to be underpaid between 2012 and 2020. The payments total AUD$12 million in wages. In the self-declaration, the company identified employees, including technical professionals and casual workers, and continues its effort with the Fair Work Ombudsman to calculate more underpayments owed to its workers.

The business also committed to making two contrition payments to the Commonwealth’s Consolidated Fund, which is equal to 5.25% of the underpayment amount. It will implement stringent measures to comply with Australian law and is hiring an external auditing firm for independent assessments on compliance with workforce rules and regulations.

Takeaway: Working with an established talent solution provider can help companies mitigate compliance risks related to the varying state rules and federal laws when operating in multiple international locations. Providers can help build best practices with guidance and expertise to navigate regulatory needs while optimizing workforce engagement.

Australia: Underpayment of Workers Leads to Significant New Costs and Penalties

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