27 Oct Federal Fair Work Ombudsman Audits
Federal Fair Work Ombudsman Audits (Oct 2010)
Important information relating to recent activity by the Federal Fair Work Ombudsman’s Office.
ARE YOU PREPARED FOR AN AUDIT?
Inspectors from the Federal Fair Work Ombudsman’s Office (FWO) uncovered a number of underpayments to staff during a routine
audit conducted on a Ballarat employer. The employer was found to be liable for over $53,000 in back-payments to four
employees. The FWO inspectors audit revealed that the employees were found to have been paid under the minimum hourly rate
and not given the correct penalty rates.
Similarly, a Victorian technician was voluntarily back-paid over $12,000 after lodging a compliant with the FWO regarding the
under-payment of annual leave and long service leave accruals.
In addition, an expensive penalty was passed down by the FWO to an employer whom had underpaid two employees by an
amount just over $20,000. As a result, the employer received a $148,000 fine, with a separate $29,700 personal fine being
imposed on the company director, even though he had claimed that the underpayments were not intentional and handled by
payroll.
These three examples of the Fair Work Ombudsman stepping up its compliance activities should serve as a warning to all
employers. In order to help Employers ensure that they are compliant, CEA HR and Consulting has prepared the following brief
checklist:
1. Have all your employees received Contracts of employment that clearly identify what Modern Award they are covered by
and their classification under this Modern Award?
YES NO
2. Are you employees’ annual leave and long service leave entitlements accurate and up-to-date?
YES NO
3. Are you applying the correct rates of pay, penalty rates, loadings and allowances under the appropriate industrial
instruments?
YES NO
4. Are you providing your employees with pay slips that are compliant with the Fair Work Act 2009 and are they receiving
these pay slips within one working day of being paid?
YES NO
If you have answered no to any of the above four questions, you are urged to contact CEA HR and Consulting immediately and
request an HR/IR Audit information pack which details our auditing service. This can be achieved by simply completing the Audit
Information Request Form attached to the end of this Circular.
CEA HR and Consulting can provide all employers with a HR/IR Audit Service. If you are interested or require further
information please contact Barb Bacciarelli.
CEA HR and Consulting
October 2010
AUDIT INFORMATION REQUEST FORM
To receive further information on HR/IR audits complete the information below. Then fax this form
to CEA HR and Consulting on:
08 8331 8144 or email to: joel@ceainc.asn.au
(PLEASE PRINT)
Name of Contact Person …………………………………………………………..
Organisation …………………………………………………………..
…………………………………………………………..
Address …………………………………………………………..
…………………………………………………………..
Phone …………………………………………………………..
Fax …………………………………………………………..
Email …………………………………………………………..
Name of Award or Enterprise Agreement Employees are Covered Under
…………………………………………………………………………………………..
…………………………………………………………………………………………………………….
Please Tick:
Constitutional Corporation Non-Constitutional Corporation
Number of Employees …………………………………………………………..
I hereby request further information from CEA HR and Consulting regarding a HR/IR audit
Signed
…………………………………………
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