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Startling level of non-compliance in the hospitality industry

September 7, 2016

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Illegal brothels, prostitution, organised crime and non-compliance with workplace laws: Fair Work Ombudsman exposes the cash economy operating within the hospitality industry

A recent investigation into the alleged exploitation of workers has revealed a startling level of non-compliance in the hospitality industry. The message is clear – no business is exempt from Australia’s workplace laws.

Task-force Cadena:

Twenty five workplace inspectors made surprise visits to 5 karaoke bars in Melbourne and Perth following a number of anonymous tip offs by staff. Shockingly, all of the venues visited were found to have breached their workplace obligations and were issued with compliance notices. Three of these businesses were also issued with hefty on-the-spot fines.

The compliance issues uncovered were broad, relating to record keeping, rostering and pay slips, as well as the underpayment of wages. Almost $19,000 was reportedly recovered for 19 employees during a sample 6 week period. This was the result of employees being underpaid their minimum hourly rate, as well as not receiving their correct loadings, penalty rates and allowances.

What does this mean for you?

It has never been easier or simpler for workers to report non-compliance issues to the Fair Work Ombudsman. A simple phone call or online complaint by a single disgruntled employee can be the trigger for the Ombudsman to commence an investigation.

Although the Fair Work Ombudsman remains committed to resolving workplace disputes, individuals can now also report their concerns anonymously. The information received can then be used to trigger further investigations and even surprise visits in an effort to uncover non-compliance with Australia’s workplace laws.

Is your business prepared for when the Fair Work Ombudsman comes knocking?

For more information on the recommendations and what this means for you, clients should contact the HR Assured team. If you’d like more information about the benefits of becoming an HR Assured client contact us today for an informal chat.