Dozens of staff at a high-end national clothing company have been back-paid more than $162,100 following an investigation by the Fair Work Ombudsman.
What started with one employee seeking assistance for unpaid wages ultimately resulted in back-payments for 36 workers across stores in Sydney, Melbourne, Brisbane and Adelaide.
The employer was paying its casual adult sales assistants a flat rate of $21 an hour, which was not enough to cover their penalty rates.
The business had incorrectly assumed that sales commissions would offset the underpayment of the flat rate for any work attracting penalties.
The employees were underpaid a total of $148,100 in wages and $14,000 in superannuation between June, 2013 and June last year.
Fair Work inspectors spent months investigating the matter, believing one employee’s unsuccessful attempt at resolving issues with the company was not isolated.
The highest amount back-paid to an individual was more than $11,100.
Fair Work Ombudsman Natalie James said the company has since reviewed the pay and contracts of all its full-time and casual employees.
James said the Agency has been working with the company to ensure its ongoing future compliance with federal workplace laws.
“Employers must ensure they understand the wage rates applicable to their employees, including penalty rates,” she said.
“When we find errors, our preference is to educate employers about their obligations and assist them to put processes in place to ensure the mistakes are not repeated.”
James encouraged employers who are uncertain about whether their workplace practices are appropriate to visit www.fairwork.gov.au or call the Infoline 13 13 94 for advice.
“Our experience and research tells us businesses are over-confident about workplace laws and many do not seek advice or help until something starts to go awry,” she said.