The Fair Work Ombudsman recovered $509 million for 251,475 underpaid workers in 2022/23, with retailers among the businesses implicated.
It is the second consecutive year of more than half a billion dollars in underpayments recovered, following the previous year’s record of $532 million.
According to the Fair Work Ombudsman, more than half of last year’s recoveries came from large corporate and university employers who together back-paid more than $317 million to more than 160,000 underpaid employees.
The Fair Work Ombudsman filed 81 litigations in 2022-23, including proceedings against holding company Super Retail Group and four of its subsidiaries.
The FWO also entered into 15 Enforceable Undertakings with businesses, which covered a total of $40.3 million back-paid to employees. These EUs involved back-payments of millions of dollars each from some of Australia’s largest employers including David Jones and Politix.
Fair Work Ombudsman Anna Booth said it will continue its firm crack down on underpayments across Australia.
“The Fair Work Ombudsman has created a firmer culture of accountability and an environment that expects Australia’s largest employers to prioritise compliance,” Booth said.
“These efforts, including prioritising both the large corporates and university sectors, and combining stronger, targeted compliance and enforcement action across our work, have led to more wages returned to workers’ pockets.
“$1 billion in back-payments across the last two years alone is an important result making a real difference to workers’ lives.
“Our investigations and enforcement actions send a clear message - all employers must place a higher priority on ensuring they are meeting all their workers’ lawful entitlements, including by improving their payroll and governance and investing in advice.”
The corporate watchdog secured nearly $3.7 million in court-ordered penalties in the year, of which nearly $1.5 million were from matters that included exploited migrant workers. These workers can be vulnerable because they are often unaware of their workplace rights or can be reluctant to speak up.
The workplace regulator also issued 2,424 Compliance Notices, resulting in $14.8 million in unpaid wages recovered. Fair Work Inspectors also issued 626 Infringement Notices for record-keeping or pay slips breaches, with total fines of $739,966 – 65 per cent more than in 2021-22.
The FWO’s website had 27 million visits to access its information on a variety of workplace law information such as award updates, legislative changes and workplace entitlements. Nearly 121,000 pages were translated into another language.
In addition, the agency’s Pay and Conditions Tool assisted employees and employers in calculating pay rates and other entitlements with a record 6.4 million visits and more than 7.1 million pay tool calculations made. While frontline staff answered more than 370,000 customer enquiries through phone and digital channels.
The agency’s Employer Advisory Service, in its second year of operation, provided 2,850 pieces of tailored, written advice to help small businesses comply with the law. This was an increase of 119% compared to its first year.
Booth said it is vitally important for the regulator to explore and address the drivers of non-compliance and leverage education and engagement activities to achieve the purpose of the FWO – to promote harmonious, productive, cooperative and compliant workplace relations.
“I am incredibly proud to lead an organisation that delivers such important services for the community,” Booth said. “Through the agency’s sustained hard work, we have ensured that employees and employers across Australian workplaces have the help and latest accurate information they need.
“Of course, prevention is better for employer and worker alike.”
Booth said the agency is continuing its intelligence-led work in 2023-24, targeting high risk sectors including agriculture, building and construction, care, fast food, restaurants and cafés, large corporates and the university sector, while also prioritising small business employers and employees, and vulnerable or ‘at risk’ workers.
“Anyone with concerns about their workplace rights or obligations should contact us for free advice and assistance,” Booth said.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.