Over 15% of Australian employees are paid under a modern award, yet a surprisingly high number of employers aren’t compliant, but think they are. Part of the reason for this is that awards can be complex and interpretations aren’t always straight forward so it can be difficult for employers to know if they are paying employees correctly under the award. In the past year, non-compliant businesses have had significant negative media attention as a result of underpaying staff.
This has led to the introduction of the new Fair Work Amendment (Protecting Vulnerable Workers) law. The new law places hefty financial penalties on businesses that purposely breach their obligations to employees or who ‘should’ve known better.’ Modern awards can be tricky, and businesses can easily fall for one of these common mistakes: