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The Fair Work Ombudsman (FWO) has recovered more than $148 million for underpaid workers in 2020-21, up 20 per cent year-on-year.
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FWO recovers $148m for underpaid workers
21 October 2021
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The total figure – $148,374,054 – represents 69,735 underpaid workers over the year in question.
In rolling out the figures, Fair Work Ombudsman Sandra Parker noted the amount is an increase of 20 per cent more than that of 2019-20 and nearly five times the recoveries achieved in 2017-18.
“We’ve continued to see some of Australia’s largest companies come forward to self-disclose workplace law breaches and our investigations have found many thousands of workers have been underpaid over many years. To address this, we’ve established a Large Corporates Branch to support specialised investigations into corporate sector underpayments,” Ms Parker said
“All employers, especially large corporate entities, must place a much higher priority on investing in payroll and workplace relations systems and expertise to ensure they are paying workers their lawful entitlements.”
Further, Ms Parker flagged that in 2020-21, the FWO entered into 19 enforceable undertakings with businesses, with 17 relating to self-reported non-compliance from large employers.
“More than $81.7 million was back-paid following extensive investigations and Enforceable Undertakings negotiated with the FWO. The workplace regulator also secured agreement for more than $3.16 million in contrition payments from companies during the year,” she said.
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“There were 76 new litigations in 2020-21, 41 per cent more than in 2019-20. The agency secured more than $2.8 million in court-ordered penalties, of which more than $2 million were in matters involving migrant workers, who can be vulnerable to workplace exploitation.
“The FWO continued to increase its use of enforcement tools, issuing 2,025 Compliance Notices in 2020-21, which led to recoveries of more than $16.5 million in unpaid wages and entitlements. Fair Work Inspectors also issued 513 Infringement Notices (total fines of more than $518,000) in 2020-21.”
Looking forward, Ms Parker reiterated the FWO’s priorities in the year ahead.
“In addition to pandemic recovery support, fast food, restaurants and cafés, large corporate underpayments, horticulture, sham contracting and franchising remain priorities for us this year,” she said.
“We are also focusing on the new priority area of contract cleaning. Anyone with concerns about their workplace rights or obligations should contact us for free advice and assistance.”
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