Fair Work Ombudsman announces its priority list – Are you on the list?

On 13 July 2020, the Fair Work Ombudsman (FWO) announced itsstrategic priorities for the 2020-2021 financial year. These priorities are inaddition to providing workplace support through the COVID-19 pandemic and the FWO’songoing role in addressing large corporate underpayments.

The FWO announced that fast food, restaurants and cafes,horticulture and the harvest trail, franchisors, and sham contracting willcontinue to be a focus of the regulator’s compliance and enforcementactivities. This is in addition to dealing with complaints and tip-offs aboutemployers alleged to not comply with their employment obligations.

The FWO advised that it will use a degree of flexibility inits approach to regulating Australian workplaces significantly impacted by theCOVID-19 pandemic, planning to enforce workplace laws in a proportionate mannerduring the pandemic. The Compliance and Enforcement Policy has been updatedaccordingly.

 The FWO, SandraParker stated that:

“Due to the impact of COVID-19 onAustralian workplaces, the number of employers and employees seeking ourassistance has grown significantly. In response, we have adjusted our servicesand prioritised allegations of serious non-compliance with workplace laws,including in relation to the JobKeeper scheme,… A business’ financial positionand viability will be considered when deciding whether to commence litigationfor serious non-compliance or determining the size of any contrition paymentincluded in any Enforceable Undertaking.”

Corporate Underpayments

With more than 60 businesses self-disclosing workplace lawbreaches with a total of half a billion dollars owed to workers to date,underpayments of staff in the corporate sector will continue to be a priorityfor the Fair Work Ombudsman due to the level of public concern.

Ms Parker stated in the FWO media statement that:

“Earlier this year I wrote to theCEOs and Boards of the top listed companies across Australia, calling forimmediate action to assure themselves, their shareholders, workers and thecommunity that their companies are meeting lawful obligations under the FairWork Act. Large organisations need to place a much higher priority onrigorously reviewing workplace relations systems to ensure that paying workerswhat they are entitled to becomes the norm.”

The FWO has committed to providing education, advice, toolsand resources to non-corporate employers and those hardest hit by COVID-19. Theregulator will also uphold the integrity of the JobKeeper scheme throughappropriate compliance activities that resolve matters quickly and efficiently.

However, NFPs and social enterprises will benefit enormouslyfrom seeking further guidance from a specialist employment lawyer to ensurethey understand what they need to do to comply with Australian employment laws,specific to their organisation’s needs.

FWO information resources

Links have been provided for:

• Australian workplace law and Coronavirus; 
• FWO’s 2020-21Compliance and Enforcement Priorities; and
• The FWO’s Compliance andEnforcement Policy.

What can your business do to avoid problems?

We have seen many employers experience stressful andchallenging dealings with the FWO because they were not aware of theiremployment obligations. This has included substantial financial impacts forNFPs in the last financial year. Recent cases have resulted in employers beingpenalised by the Federal Court:

• $22,050 for failing to comply with a ComplianceNotice issued by the Fair Work Ombudsman, requiring them to calculate andback-pay alleged underpayments of a former employee as well as rectify theunderpayment plus interest;[1]
• $22,440 penalty against the formerowner-operator of a labour-hire company following the underpayment of 80 workerson a Queensland farm;[2]and
• $264,690 in penalties against a former Sydneyentrepreneur, his wife and three companies he operated in response to employeesbeing underpaid more than $1 million.[3]

Unfortunately, many NFPs and social enterprises are notaware of the role the Fair Work Act 2009 and associated legislationplays in their operations until it is too late. Getting professional advicefrom an experienced employment lawyer will help you to establish a soundemployment framework to avoid later disputes and compliance issues.

If you are concerned about your employment arrangements orwould like to know more about how the FWO could affect your NFP or socialenterprise, NFP Lawyers can assist you with advice and the documents you needto comply with your employment obligations. You can contact us at reception@nfplawyers.com.au or on(07) 3160 0010.

[1]    https://www.fairwork.gov.au/about-us/news-and-media-releases/2020-media-releases/july-2020/20200710-old-cop-shop-penalty-media-release

[2]    https://www.fairwork.gov.au/about-us/news-and-media-releases/2020-media-releases/july-2020/20200709-mushrooms-penalty-media-release

[3]    https://www.fairwork.gov.au/about-us/news-and-media-releases/2020-media-releases/june-2020/20200618-silver-matters-penalty-media-release

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The material distributed is general information only. The information supplied is not and is not intended to be, legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.