Are you paying your staff correctly?
As an employer, you have the responsibility of paying your employees are the correct rate, as well as any entitlements that are eligible for. Are you paying your staff correctly?
Woolworths is the latest company to be facing a fallout from the underpayment of staff. In what is believed to be the largest remediation of its kind, Woolworths have stated that they have underpaid 5,700 salary team members with remediation expected to be in the range of $200-$300 million (before tax).
This discovery was made as part of a 2 year review following the implementation of a new enterprise agreement but could have been occurring since the implantation of the modern award back in 2010.
Woolworths have stated:
Annual salaries for store team members are set to cover ordinary working hours and reasonable overtime. However, team members are entitled to be paid the higher of their contractual salary entitlements, or what they otherwise would have earned for actual hours worked under the GRIA. The review has found the number of hours worked, and when they were worked, were not adequately factored into the individual salary settings for some salaried store team members.
It is imperative that you are paying your employees at the correct rates as well as ensuring they are receiving superannuation contributions and any entitlements they are eligible for. If staff are underpaid, it is not simply a matter of making catch up remediation payments or backpays. Underpayment of wages, salaries, superannuation or employee entitlements will incur significant penalties, charges and possible legal action.
Don't become the latest victim in an underpayment scandal! Make sure that you are paying you staff correctly! Visit the Fair Work Ombudsman's pay and conditions tool and see their guide to audit your pay rates.
The Money Edge | Bundaberg