$7 per hour: FWO cracks down on dodgy job ads

The Fair Work Ombudsman’s (FWO) crackdown on illegal job advertisements has led to employers being hit with more than $89,000 in fines, with job websites also called upon to do better.

Since March 2023, Fair Work Inspectors have issued 151 infringement notices (fines) to employers. This comes after the national workplace regulator received the power to issue fines on employers who post job ads that offer rates of pay so low that it is illegal.

FWO’s Anna Booth said the regulator is making it clear to the popular online job sites that job ads that promote illegal rates of pay would no longer fly. In fact, the regulator plans to write to the major online job sites, offering a stark warning that both the FWO and the public expect them to play their part in stamping out these unlawful and exploitative job ads.

“Dodgy job ads are unlawful, and some of them are scams. We want to stop dodgy ads before they appear,” Booth said.

“We are calling on all job websites to maximise awareness to employers, recruiters and the public about the importance of advertising legal minimum wages.”

One stand-out example was when the FWO received an anonymous tip-off from a member of the public, which alleged that ads for a full-time/part-time role in a bar staff position were being advertised offering just $7 to $10.50 an hour.

The inspector who looked into the $7 per hour matter confirmed the legitimacy of the advertisement, which led him to form a reasonable belief the employer had contravened the Fair Work Act. The inspector issued a fine of $313, and the job ad was eventually removed from the website.

“We are also requesting job websites make it easier for employers to put legal wage rates in their ads, such as by allowing advertising employers to enter their own specific wage figures rather than having preset ranges,” Booth said.

“Employers should do the right thing when recruiting their workforce – and those who break the law are paying the price.”

These exploitative job ads often target vulnerable people who are desperate for some form of employment. Migrants, for example, have fallen victim to widespread wage theft, as previously covered on HR Leader.

According to the recent All Work, No Pay report, underpayment was the most common exploitation of migrant workers. The FWO reported that the common breaches were paying below the correct hourly rate, failing to pay correct weekend penalty rates, and failing to pay casual loading penalty rates.

Each of these exploitive wage procedures can be reinforced by those dodgy job advertisements that the FWO is trying to stamp out. It is only one piece of the rampant wage theft puzzle that is disproportionality affecting migrants.

“We want to stop exploitation at the earliest moment – and trying to take advantage of migrant workers who may be desperate for income or unaware of their rights is appalling,” Booth said.

The FWO is looking at new ways to increase its capabilities to undertake wider-scale surveillance of job ads and to detect non-compliant ones, using enhanced detection tools.

Another advertisement was spotted for a casual food and beverage attendant at a café, which offered a pay rate as low as $13.36 per hour. After being contacted by the FWO, the employer claimed that the lowest range was “close” to the introductory rate for someone younger than 17 and retorted that it should “only receive a warning”.

Despite its rebuttal, the company still received a fine of $1,375, as it is responsible for its recruitment activities. The employer was educated on the proper procedure for job advertisements by the FWO, and a couple of months later, rang the inspector to clarify that its new ad was legal and compliant.