The Serious Issue of Underpaying Staff

It’s sad, but true: the serious issue of underpaying staff appears to be growing.
This year has witnessed an incredible string of high-profile exposés surrounding some of Australia’s biggest corporations, culminating recently with supermarket giant Woolworths short-changing 5,700 staff as much as $300 million.
The Woolworths debacle followed similar controversies with certain 7-Eleven franchisees and celebrity chef George Calombaris. The cumulative effect of the negative press surrounding these cases of unpaid overtime and entitlements has now forced other retail heavyweights such as David Jones and IGA to run an audit of their payroll systems.
But what if your company is unlikely to take the initiative of self-reporting? You might suspect you’re being underpaid, but how can you be sure? And if you’re an employer, how can you be certain that even despite your best efforts to keep pace, you’re not falling foul of ever-changing workplace laws, awards and bargaining agreements.
1. Get the facts
It’s impossible to determine whether you’re being underpaid if you don’t know what you are entitled to. The Fair Work Ombudsman’s website (https://calculate.fairwork.gov.au/findyouraward) has a great pay calculator tool for people of all ages, trades and skill levels. Employers can also use this to ensure they are correctly paying each staff member in accordance with their age and skill level.
2. Knowledge is power
Our smartphones are a terrific source of information (chances are you’re probably reading this blog on one right now!). But sometimes there’s no substitute for old fashioned, face-to-face communication. Speaking to colleagues about what they receive, both in terms of wage and entitlements, can open your eyes very quickly.
3. Resolve disputes amicably
The unfortunate storm around Calombaris earlier this year should come as a warning to employers about the reputational risk around underpaying staff. The concept of getting a ‘fair go’ is precious to Australians.
If an employee has a fair claim, it is best to try and resolve the matter amicably. The rising incidence of these claims has shifted power in favour of employees, who can quickly assemble mass action and social media campaigns to attract attention to their plight and simultaneously negatively impact a business’s goodwill.
The key to avoiding heightened and costly action is for employees and employers to be fully aware of their respective rights and obligations. If you are unsure about where you stand, contact Lee Pawlak or Dominic Tonkin from TDP’s Workplace Law team today.