In our latest article in The District Reporter, read all about “Wage Theft” – what it means, how it may affect you, and what to do if you think you’re not being paid properly.
There have been a lot of recent media reports about companies who have been found to, or who have admitted to, having underpaid their employees. This is often reported as wage theft.
It is against the law in Australia for employees to be paid less than the national minimum wage or, for employees who are covered by an award or registered agreement, to be paid less than the applicable wage for their classification. For those employees who are in the national workplace relations system, which is most of the employees in Australia. This applies even if you agree and sign a contract as an employee that you will not seek the minimum wage you are entitled to. A contract for an employee cannot provide less than the applicable minimum wage.
Many employees are paid a salary where some entitlements such as minimum weekly wages, penalties, allowances and overtime are included in an annual salary. This is allowed, but the salary must not provide less than the minimum entitlements the employee is entitled to under the applicable award or registered agreement and the National Employment Standards.
An employment contract may also set out what the employee’s working hours and leave entitlements are. These entitlements cannot be less than the National Employment Standards at the time you agree to sign the contract. The National Employment Standards are 10 minimum requirements that apply to all employees and include maximum weekly hours, annual leave, personal/carer’s leave and the required notice provisions for termination.
If you believe you have been underpaid or not given the correct entitlements, legal advice will assist you in trying to rectify the situation which could include trying to deal with your employer as a first step. The Fair Work Ombudsman may also be able to provide you with some assistance.
You can commence proceedings for the recovery of underpaid salary or underpaid leave entitlements. If the claim is under $20,000, you can use the small claims process which is faster and more informal than other court processes. You usually have six years from when the entitlement was due to be paid to bring a claim. In some cases, civil penalties can be sought against an employer and anyone involved in the contravention of the Fair Work Act as a result of the underpayment of wages and entitlements. This can include business owners and managers.
The federal government is currently considering further changes to this area including making the worst cases of wage theft a criminal offence.
Having your employment contract reviewed by a solicitor can give you confidence that your wage and entitlements are being dealt with properly by your new employer or identify any areas which may not be compliant with the law so this can be rectified before you start a new job.
