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Fair Work Act

Story contributed by Margaret Goody, Managing Director - Akyra Strategy & Development

SIGNIFICANT CHANGES FROM JULY 1

Did you know that non-compliance with industrial laws just got more expensive?

Under the Fair Work Act, which governs how you engage your employees, the value of the Federal Penalty Unit is set to increase by approximately 15% from 1 July 2017.

In an employment context, this means employers can be fined up to $63,000 per breach of the Fair Work Act, whilst individuals (e.g.: directors, managers and others found to be ‘accessories’) can be personally fined up to $12,600 per breach.

Last financial year the Fair Work Ombudsman ran extensive audit campaigns in several industries. Of the businesses audited, approximately 39% were found to be non-compliant. If the large well-resourced organisations like Coles and Woolworths can’t get it right, it is not surprising smaller businesses struggle to remain fully compliant.

What should you do?
Rather than wait for complaints to be made or the FWO to come knocking, it is strongly recommended you or the person responsible for your HR review your industrial and employment practices to identify any potential areas of non-compliance.

This will give your business the opportunity to rectify any issues which will also minimise legal and reputational risks. Areas to review include:

  • Wage rates
  • Penalty rates, loadings and allowances
  • Payslip content
  • Record keeping
  • Template employment agreements
  • HR policies

The next of the Akyra Workshops – ‘The Devil is in the Detail - getting your Employment Agreements right’ is running July 12 and 13 in Brisbane, click here to find out more.  

BNCC members’ $20 discount code – CHAMBER.


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