The FWO found that of the 125 businesses audited in the campaign 56 (45%) businesses were not compliant with their obligations under workplace laws.
Of the 56 businesses that were non-compliant with their workplace obligations:
- 27 (22%) had breaches relating to pay rates
- 20 (16%) had breaches relating to pay slips or record-keeping
- 9 (7%) had both pay rate and records/pay slips breaches.
This means of all 125 businesses audited in the campaign:
- 36 (29%) businesses were not paying their employees correctly
- 29 (23%) businesses were not compliant with record-keeping and pay slip requirements
- $54 701 was recovered from 24 businesses for 113 employees
The 56 businesses that were non-compliant with workplace laws had a total of 84 individual breaches. Of these breaches, the most common were:
- pay slips (33%)
- underpayment of hourly rates (28%)
- penalty rates (23%).
Businesses provided the following reasons for non-compliance:
- they were unaware of the correct award coverage or conditions
- they missed the July wage increase
- they received incorrect advice from a third party including bookkeepers and accountants.
Membership and business size
The FWO finds that businesses are more likely to be compliant with workplace laws when they have access to specialised workplace relations advice such as through membership to an employer organisation, access to accounting or legal advice or a dedicated human resources professional within the business. Larger businesses are more likely to have the resources to employ a human resources or payroll professional in house.
Consistent with the FWO’s experience across our campaigns, businesses that were members of an industry or employer association had a higher compliance rate (70%) than businesses that were non-members (50%).
Larger businesses (with 15 or more employees) had a higher compliance rate (69%) than smaller businesses (50%). Again, this is consistent with the FWO’s general findings across campaigns.