Here are $509 million reasons why businesses must take compliance seriously

‘The second largest historical annual figure in the history of the Fair Work Ombudsman’

Kristen Hannah, acting Fair Work Ombudsman, announced on 1 August 2023 during a Policy-Influence-Reform (PIR) conference in Canberra the 2022-2023 wage recovery figures. The figures released for this period were described as the second-largest historical annual figure in the history of the Fair Work Ombudsman (FWO).

The FWO announced wage recoveries of $509 million in unpaid wages and entitlements for more than 250,000 workers between 2022-2023. Acting Ombudsman Hannah, highlighted that over the last two financial years alone there has been more than $1 billion in wage recoveries provided to workers around Australia.

So, what does this mean?

These staggering figures highlight that the many instances where workers have experienced underpayment have been corrected with back-payment processes being completed. It also instils the commitment – and a timely warning – for businesses, to continue to pay their workers correctly otherwise face harsh consequences.

These figures represent the purpose of two critical bodies: the Fair Work Commission and the Fair Work Ombudsman. Approximately $317 million of the total wage recovery sum for 2022-2023 came from large corporate and university employers, including David Jones, Politix, Crown Melbourne and Perth, Suncorp, and three separate universities. Regardless of the organisation’s size, there’s an expectation that the company report any wrongdoings to the Ombudsman when they first come to light.

Additionally, between 2022-2023 the FWO commenced litigations against Super Retail Group and four of its subsidiaries and two franchisors (85 Degrees Coffee and Bakers Delight Holdings). Both franchisors have been alleged to be in breach of workplace laws.

During Ombudsman Hannah’s speech, she highlighted the agency’s dedication to education on workplace laws and important changes, acknowledging that preventing breaches is far better than having to correct them.

How do I protect myself as an employer?

It is key that all businesses reflect upon the figures of the 2022-2023 wage recovery and ensure that they’re meeting the compliance standards in their workplaces.

About our author

Amelia Attard is a Workplace Relations Advisor at FCB’s sister company, HR Assured. She assists clients with a range of employment relations and compliance matters via the 24/7 HR Advice Line. She is currently studying for a Bachelor of Laws and Social Science.