The Fair Work Ombudsman continues to crack down on worker underpayments, having recovered $473 million for nearly 160,000 underpaid workers in 2023-24.
This takes back-payments to workers to $1.5 billion across the last three years.
The recoveries came in a year where the Fair Work Ombudsman secured the largest penalties in its 15-year history, with the regulator’s litigations leading to $21.2 million in court-ordered penalties.
The $473 million recovered for workers across Australia, detailed in the workplace regulator’s newly published annual report, is the third-highest annual figure recorded.
More than half of the 2023-24 recoveries came from large corporate sector employers, who together back-paid more than $333 million to nearly 110,000 underpaid employees. This sector - which the FWO calls a priority area - has had a cumulative $877 million back-paid to workers since July 2020.
Acting Fair Work Ombudsman Michael Campbell said the regulator has created a firmer culture of accountability across workplaces where Australia’s largest employers are expected to prioritise compliance.
“The success of these efforts means both that workers have money they were owed back in their pockets, making a real difference in their lives, and that there is a level playing field for all those employers doing the right thing,” Campbell said.
“Our investigations and enforcement actions send a clear message that employers must place a higher priority on ensuring they are meeting their workers’ legal entitlements, and that includes by improving their payroll systems and governance, and investing in advice.
“We will continue to collaborate with employer organisations and unions to educate employers and workers. Workplace law compliance can and should be a shared responsibility of the Australian workplace community.”
Major litigation outcomes in 2023-24 included the FWO’s securing of $10.3 million in penalties against the Commonwealth Bank of Australia and CommSec, more than $4 million in penalties imposed against the operators and managers of Din Tai Fung restaurants, and more than $1.4 million in penalties against the franchisor of the 85 Degrees brand in Australia.
Nearly $8 million of the total penalties imposed in the regulator’s completed court cases related to employers of migrant workers and visa holders, including the Din Tai Fung case.
The Fair Work Ombudsman filed 64 new litigations in 2023-24.
The FWO also entered into 15 enforceable undertakings with businesses, which included a total of $30.2 million back-paid to employees and improvements to prevent future compliance issues within these businesses.
Most of these enforceable undertakings involved back-payments of millions of dollars each from some of Australia’s well-known employers including Best & Less, Starbucks Coffee Australia, Optus Retailco, Insurance Australia Group Limited, Eagers Automotive Limited and World Vision Australia.
The workplace regulator also issued 2,574 Compliance Notices, recovering $16.9 million in unpaid wages.
Fair Work Inspectors issued 760 Infringement Notices for record-keeping or pay slip breaches, with total fines of $986,616 - an increase from 626 Infringement Notices in 2022-23 and $739,966 in fines paid.
“We are continuing our intelligence-led, priority-driven work in 2024-25, targeting high risk sectors including aged care services, agriculture, building and construction, disability support services, fast food, restaurants and cafés, large corporates and universities,” Campbell said.
“We retain our enduring priorities of assisting small business employers and employees, and vulnerable or ‘at risk’ workers.”
More than 3,000 small businesses received tailored written advice on pay and entitlements from the FWO’s Employer Advisory Service, an increase of 8 per cent from last year. Small business-related website information was accessed more than 200,000 times.
Migrant workers, who can be vulnerable to workplace exploitation according to the FWO, were overrepresented in terms of anonymous reporting to the regulator. They made more than 4,000 reports, accounting for nearly a quarter of all reports received.
“Migrant workers are reminded that they have the same workplace rights as anyone else in Australia. Anyone with concerns about their workplace rights or obligations should contact us for free advice and assistance,” Campbell said.