Fair Work announces Australian workers back-paid $473 million

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Fair Work announces Australian workers back-paid $473 million in 23-24

Fair work

 

In the 2023-24 financial year, the Fair Work Ombudsman (FWO) recovered a staggering $473 million for nearly 160,000 underpaid workers. Over the past three years, this has amounted to $1.5 billion in back-payments, highlighting a significant ongoing issue in the Australian workforce.

Fair Work Ombudsman ActionValue
Total amount recovered for underpaid workers (2023-24)$473 million
Total back-payments to workers over the last three years$1.5 billion
Number of underpaid workers helped (2023-24)Nearly 160,000
Largest penalties secured by FWO (2023-24)$21.2 million
Third-highest annual recovery figure$473 million
Amount recovered from large corporate employers (2023-24)More than $333 million
Number of underpaid employees from large corporationsNearly 110,000
Cumulative back-payments from large corporates since July 2020$877 million
Total penalties from major litigation outcomes (2023-24)$10.3 million (CBA and CommSec), $4 million (Din Tai Fung), $1.4 million (85 Degrees)
Penalties related to migrant workersNearly $8 million
New litigations filed by FWO (2023-24)64
Enforceable Undertakings entered into15
Total back-paid through Enforceable Undertakings$30.2 million
Compliance Notices issued2,574
Unpaid wages recovered through Compliance Notices$16.9 million
Infringement Notices issued760
Total fines from Infringement Notices$986,616
Small businesses receiving tailored adviceMore than 3,000
Increase in access to small business advice (percentage)8%
Reports from migrant workersMore than 4,000
Percentage of all reports made by migrant workersNearly 25%

This past year marked a pivotal moment for the FWO, as it secured the largest penalties in its 15-year history, amounting to $21.2 million in court-ordered penalties. The $473 million recovered represents the third-highest annual figure recorded, illustrating the widespread nature of payroll compliance issues across Australia.

Notably, more than half of these recoveries originated from large corporate employers, who collectively back-paid over $333 million to nearly 110,000 employees. Since July 2020, this sector has been responsible for a cumulative $877 million in back-payments, emphasizing the need for these employers to prioritize compliance with workplace laws.

Major legal outcomes in the past year included significant penalties against prominent companies, with $10.3 million imposed on the Commonwealth Bank of Australia and CommSec, alongside penalties against other well-known brands. These figures reinforce the urgent necessity for all employers to take payroll compliance seriously, as non-compliance can lead to severe financial repercussions and damage to reputations.

Additionally, the FWO issued 2,574 Compliance Notices, recovering $16.9 million in unpaid wages. With 760 Infringement Notices issued for record-keeping or pay slip breaches—resulting in total fines of $986,616—it’s clear that the regulatory landscape is becoming increasingly stringent.

Given these statistics, Australian employers must recognize the critical importance of maintaining robust payroll systems. Compliance is not merely a legal obligation; it is essential for fostering trust and integrity within the workforce. Employers need to invest in improving their payroll governance and seek expert advice to avoid the pitfalls of underpayment.

Moreover, vulnerable groups, such as migrant workers, are particularly at risk of exploitation, as evidenced by their significant representation in reports to the FWO. Ensuring fair treatment and compliance for all workers not only fulfills legal requirements but also contributes to a healthier workplace culture.

In conclusion, the statistics presented demonstrate a clear and urgent call to action for Australian employers. Taking payroll compliance seriously is essential—not only to avoid hefty penalties but also to ensure a fair and equitable work environment for all employees. The message is clear: proactive measures in payroll management are critical for the sustainability and reputation of any business in Australia.

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