If ever there was a time to ensure your business complies with the Fair Work Act 2009 and Modern Awards, it’s now!
Failing to apply the correct Modern Award to your employees can cost your company dearly. Take the recent case of Pop Art Australia, a Victorian-based design and manufacturing company. Pop Art had consistently paid its employees under a manufacturing industry award and had even received confirmation from the relevant authorities on eight separate ocassions over five years.
However, following a visit from the Fair Work Inspector, the Fair Work Ombudsman determined that the company should have been paying workers at a higher rate found in the Storage Services Award.
As the Fair Work Inspector found the company was in breach of a number of Award terms and conditions, Pop Art was required to take immediate action to ensure compliance. The company’s managing director, Mr Colin Robertson, calculated that the cost of compliance with the new Award would be $700,000 – almost equal to the company’s annual wages bill.
Luckily for Pop Art, their story made it into The Australian and the Fair Work Ombudsman conducted a further review and ultimately decided to withdraw the contravention notice.
It’s alarming to think that if this story hadn’t made it into The Australian, Mr Robertson’s business would surely now be out of pocket to the sum of $700,000.
No binding advice
The Fair Work Ombudsman does not provide binding advice to employers and will not determine Award coverage upon request. It is therefore essential that you rely only on written advice which is verified by an expert in the field – an expert like Better HR.
Understanding and applying the correct Modern Awards in your business is vital. Becoming a Better HR subscriber means you’ll have direct access to all 122 Awards and have the peace of mind of knowing that all employment contracts and documentation you generate from our service comply with the Modern Awards.
