The Fair Work Ombudsman (FWO) has issued a statement, noting it recently recovered $368,666 for 102 underpaid security guards and supervisors after investigating companies engaged in providing security around Perth.
The matter comes after Fair Work launched an investigation in July 2021 where it audited 13 security businesses to check their compliance with workplace laws. The investigation was kicked off after the body was given anonymous tip-offs that some businesses may be breaching workplace laws.
“From the 12 matters where investigations have concluded, inspectors found that nine businesses (75 per cent) were non-compliant,” the statement from the FWO said.
“Of the businesses in breach of workplace laws, eight had underpaid their workers and three had failed to meet pay slip and record-keeping requirements.”
According to the body, the most common breaches found were failures to pay penalty rates, including weekend, shift, public holiday and other loading (seven businesses), followed by failures to pay overtime rates (five businesses).
In total, $368,666 was recovered from eight businesses for 102 employees after the FWO issued nine compliance notices. Amounts back-paid from individual businesses ranged from $159,940 for 17 employees to $55 for one employee. In addition, there were two infringement notices issued for breaches of pay slip laws, resulting in $3,108 in fines paid.
Commenting off the back of the investigation, Fair Work Ombudsman Sandra Parker issued a stark warning to non-compliant businesses.
“The high rate of non-compliance we found among these security businesses is a concern. In particular, employers were not meeting their obligations to pay penalty rates, which the law requires to compensate workers for working often unsociable hours when most of the community are not,” Ms Parker said.
“We expect all businesses to prioritise meeting their obligations so that workers are paid the right wages and entitlements in full.”
All non-compliant businesses were advised that any future breaches may lead to higher-level enforcement action by the Fair Work Ombudsman, she added.