Multi-million fines or prison…the cost of being “out of the loop” on Australia’s new employment laws

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1. WEEKLY INSIGHT

Massive Increase in Fair Work Act. Size is 50% larger than in 2022.

(1) Average Fine: $100,000 per violation.

(2) Wage Theft: 10 years in jail or multi-million-dollar fines.

(3) Underpayment: x3 the amount owed, fines up to $7,825,000 for corporations.

(4) Misclassification of Employment: Fines up to $469,500 for not following the 12-step rule.

(5) Right to Disconnect: Fines ranging from $18,780 to $93,900.

(6) Record-Keeping Errors: Fines up to $9,390 on the spot.

2. HR/IR & LEADERSHIP

$1.5 Million Compensation Awarded to Employee 4 Years After Being Wrongfully Dismissed

HR must carefully handle dismissal cases as highlighted by a a recent case in the Federal Circuit and Family Court of Australia – Haley v Laing O’Rourke Australia Management Services Pty Ltd (No 8) [2024] FedCFamC2G 779 (23 August 2024).

In the case ehe employee, a manager worked for over 17 years at an MNE construction company… they faced dismissal over an alleged incident that the court found unsubstantiated.

  • Multiple flaws in the employer’s dismissal process, including:
    • A) Lack of procedural fairness
    • B) Inadequate investigation.
  • The case underlines the necessity for employers to ensure:
    • Procedural fairness in investigations
    • Maintain comprehensive records of all investigations and outcomes.
  • The damages awarded included compensation for:
    • Lost income
    • Legal & relocation expenses
    • Non-material damages for hurt, distress _ humiliation
      • All of which reflected the perceived disruption to the employee’s career trajectory caused by the unfair dismissal.

  • Prevent Wage Theft and save you up to $7,825,000
  • Prevent Underpayment and save you up to $1,565,000
  • Prevent Misclassification of employees and save you up to $469,500
  • 24/7 Expert advice on HR matters
  • Protection from fines and legal penalties
  • Ensure your employees are treated fairly
  • Free up your time to focus on growing your business
  • Ensure compliance with complex labour laws
  • Get regular updates on legislative changes

4. THIS WEEKS TOP HR READS

  1. Workplace Resources for asking R U OK? at Work
  2. Why wage theft issues are so prominent in Australia
  3. Country Road profit tumbles amid sexual harassment scandal
  4. Employers facing criminal penalties for contacting employees out of hours after right-to-disconnect

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