‘Most employers do the right thing, but there are some who do not’: Avoiding wage theft
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The Fair Work Ombudsman has clarified new payment rates and terms, with unions revealing why checking payslips is especially important in this new financial year.
Further to the 2 June announcement of a 4.75 per cent wage increase by the Fair Work Commission, employers are being reminded of their new obligations, and workers are urged to take the initiative when it comes to their payslips.
The latest wage increase, which took effect on 1 July, will see a lowest award rate of $26.44, totalling $1,004.90 for a full-time employee – the first time the weekly minimum wage is over $1,000.
While the boost is anticipated to help workers weather a volatile economic environment, economic security remains far off for many due to ongoing cost-of-living pressures, with the FWC outlining that it couldn’t apply a real wage increase.
“Taking into account all of these matters, we have concluded regrettably that it would not be practicable or responsible in the current uncertain circumstances to award a real wage increase for employees reliant on modern award wage rates,” Justice Adam Hatcher, FWC president, said.
In light of the increase commencing last week, Fair Work Ombudsman Anna Booth reinforced that “employers must apply the new minimum wage from the first full pay period on or after 1 July to eligible employees”, and that pay calculators are available for anyone unsure of the new rates.
Similarly, employers are reminded that the increase may also apply to employees if their base rate pay under an enterprise agreement is less than that under the relevant award of the new minimum wage.
Regarding the approximately 3 million Australian workers who rely on minimum and award wage rates, the Australian Council of Trade Unions (ACTU) has issued a warning that some risk missing out on the wage increase if they don’t monitor their payslips.
According to ACTU secretary Sally McManus, “these pay rises are not automatic and not because employers are volunteering them”.
She said: “July is pay rise month for millions of Australian workers. It’s not just those on award wages, but many collective agreements have pay rises that also kick in on 1 July. It’s important that everyone who is affected checks their payslips this month to ensure their employer is paying what unions fought for and so they can experience the cost-of-living relief that comes from extra pay.”
McManus suggested employees compare their most recent June payslip with the first one they receive in July to confirm if a change has been applied, and warned employers that non-compliance will be met with renewed penalties.
“The Albanese Labor government brought in laws to crack down on those employers who withhold the pay rises they are legally required to pass on. This includes fines and possible criminal sanctions for the most serious cases.
“If something doesn’t add up on your payslip, keep it, call your union,” McManus said.
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
The bare minimum that can be paid to a full-time worker each year is known as minimum wage. For temporary and part-time workers, this is prorated.
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Amelia McNamara
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
