Massive penalties increase for breach of the Fair Work Act

Massive penalties increase for breach of the Fair Work Act

Employers should double-check their compliance with Fair Work Act and the National Employment Standards, following the introduction of the Fair Work Amendment Bill 2017 to Parliament.

Following several high profile cases such as the 7-Eleven and the Baiada Group, the proposed changes comes as a response to concerns about the exploitation of vulnerable workers (including migrant workers) by dodgy employers.

Employers that calculate the costs associated with being caught as an acceptable cost of doing business are clearly being targeted with the following proposed amendments:

  • A tenfoldincrease in the maximum penalty for serious and deliberate breaches of the Fair Work Act: (up to $540,000 for corporations)
  • Hold franchisors and companies directly responsible where they knew or should have knownof the breaches and failed to take reasonable steps to prevent them
  • Provide the Fair Work Ombudsman (FWO) with powers to investigate similar to the ASIC and ACCC

This is a big wake-up call for Australia’s $150b Franchise Industry as it will hold franchisors (head-office) directly liable for non-compliance of its franchisees.

However, the bill is not just about franchisors and with the introduction of massive fines associated with serious and deliberate breaches; all employers should double check their compliance with FWA and the National Employment Standards.

Getting policies drafted correctly in the first place, or having your existing documents checked by a good HR professional or employment lawyer, could save you a lot of headache and money in the longer run.

To achieve legal compliance, it is vital that you also train your staff in so that they understand your policies and procedures.

TANDI Online Training and Inductions, include both HR Policies & Procedures AND Workplace Health and Safety training.  You can refer to the policies outlined in this training to clarify and remind the employee of the workplace rules and performance expectations.

TANDI inductions provide managers with evidence of what training has been completed and employees are able to re-do training if they need a reminder.

If you would like to know more about the TANDI Online Employee Induction CLICK HERE.

Pricing start at just $20 per employee and there are no set up costs or lock in contracts. To learn more about our prices CLICK HERE.

Do you have a friend or colleague you think will benefit from reading this?

Knowledge is one of today’s key assets. So why not forward this on to your friends and colleagues? Share knowledge and help people connect with one another.