Rampant Underpayment Of Workers Across Parts Of Western Sydney

Fair Work investigation

Rampant Underpayment Of Workers Across Parts Of Western Sydney Image: Pexels

Two thirds of Western Sydney businesses are non-compliant with Australian workplace laws, according to a damning investigation by the Fair Work Ombudsman.

Fair Work today released the results of its proactive education and compliance campaign in the region, covering suburbs including Cabramatta, Guildford, Mt Druitt, Fairfield and Merrylands.

Of the 197 businesses audited during the campaign, 64 per cent were found to be non-compliant, with a total of $369,324 in unpaid wages and entitlements being recovered for 199 workers.

Overall, Fair Work inspectors issued 26 formal cautions, 20 infringement notices (on-the-spot fines) and 11 compliance notices to non-compliant businesses during the course of the campaign.

In one case, a restaurant business was found to be paying its casual employees under an old award, resulting in a total underpayment of $10,444 to three employees.

Fair Work inspectors issued the employer with a compliance notice, and the employees were fully back-paid in accordance with the notice.

Image: Pexels

Fair Work Ombudsman Natalie James said the non-compliance rates uncovered by the campaign are highly concerning and cannot be tolerated.

“Where possible, we seek to educate employers and employees about their workplace rights and obligations and equip them with the tools and information they need to ensure they are complying with the law,” Ms James said.

“This area has a large proportion of people from culturally and linguistically diverse backgrounds, who can find it more challenging to navigate that information or even know where to find it in the first place.

“When combined with a lack of familiarity with workplace laws, language barriers can present significant difficulties to employers seeking to understand and comply with their obligations.

“The results of this campaign reaffirm the importance of my agency’s work in reaching out to culturally and linguistically diverse communities to raise awareness of the help we can provide."

While auditors found 64 per cent of businesses were compliant with record-keeping and payslip requirements, just 58 per cent were paying their employees correctly.

The campaign was initiated following an increase in the number of requests for assistance received from some parts of the region in previous years, despite an overall decrease across New South Wales in the same period.

As part of the campaign, Fair Work inspectors conducted site visits with a particular focus on Harris Park and Parramatta in response to intelligence received by the agency indicating potential non-compliance amongst restaurants in the area.

The suburbs are also home to a higher than average proportion of migrants, with both Harris Park (85 per cent) and Parramatta (74 per cent) at more than twice the national average of 30.2 per cent.

Acknowledging that new arrivals to Australia may have a limited awareness of Australian workplace laws, it was considered that businesses in the region would benefit from tailored support and education from the Fair Work Ombudsman.

Only two of the 23 businesses visited in these suburbs were found to be fully compliant – a non-compliance rate of 91 per cent.

Employers and employees seeking assistance can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. An interpreter service is available on 13 14 50.

Potential workplace breaches can be anonymously reported in 16 languages other than English using the Fair Work Ombudsman’s Anonymous Report function at www.fairwork.gov.au/inlanguageanonymousreport.

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