Fair Work Ombudsman
At a glance
- Wesfarmers Industrial and Safety Pty Ltd
- $4,800,000
- 3400
What happened
Seven subsidiaries of Wesfarmers Industrial and Safety Pty Ltd (WIS), including J. Blackwood & Son Pty Ltd, Protector Alsafe Pty Ltd, Bullivants Pty Limited, The Workwear Group Pty Ltd, Coregas Pty Ltd, Blacksmith Jacks Pty Ltd and Lawvale Pty Ltd, have underpaid more than 3,400 employees nationally. The underpayments occurred between January 2010 and June 2020, totaling over $4.8 million plus $246,779 in superannuation. The errors stemmed from payroll system issues arising from acquisitions made in 2013 and 2014. Affected employees worked in various roles across locations including Melbourne, Sydney, Newcastle, Wollongong, Mackay, Canberra, Perth and Darwin.
What was decided
The Fair Work Ombudsman secured an Enforceable Undertaking (EU) from the WIS entities. They must back-pay all known underpayments, superannuation, and interest (totaling over $6.3 million) by February 2023. Individual underpayments reached up to $38,362, with an average of $1,392. The EU requires independent annual audits for two years to ensure future compliance. The WIS entities must also pay a $100,000 contrition payment to the Commonwealth and display apology notices online. The Ombudsman highlighted the importance of employers investing in compliant payroll systems.
What it means for employers
Employers must ensure their payroll systems are accurate and compliant with workplace laws. Regularly review and update systems, especially after acquisitions. Failure to do so can result in significant back-payment obligations and penalties. Independent audits are a good practice to verify compliance.
What it means for employees
Employees should regularly check their pay slips to ensure they are receiving correct entitlements. If underpayments are suspected, employees should raise the issue with their employer and contact the Fair Work Ombudsman for assistance. The EU demonstrates the Fair Work Ombudsman’s commitment to recovering underpayments.
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