The Fair Work Ombudsman is reporting that it recovered $509 million for 251,475 underpaid workers in 2022-23, the second consecutive year of more than half a billion dollars in underpayments recovered.
This is reported in FWO’s annual report, detailing that more than half of last year’s recoveries came from large corporate and university employers who together back-paid more than $317 million to more than 160,000 underpaid employees.
“The Fair Work Ombudsman has created a firmer culture of accountability and an environment that expects Australia’s largest employers to prioritise compliance,” Fair Work Ombudsman Anna Booth said. “These efforts, including prioritising both the large corporates and university sectors, and combining stronger, targeted compliance and enforcement action across our work, have led to more wages returned to workers’ pockets.
“$1 billion in backpayments across the last two years alone is an important result making a real difference to workers’ lives [and] our investigations and enforcement actions send a clear message,” Booth added. “All employers must place a higher priority on ensuring they are meeting all their workers’ lawful entitlements, including by improving their payroll and governance and investing in advice.”
The Fair Work Ombudsman also reported that it filed 81 litigations in 2022-23. In concluded cases, the agency secured nearly $3.7 million in court-ordered penalties in the year, of which nearly $1.5 million were from matters that included exploited migrant workers. These workers can be vulnerable because they are often unaware of their workplace rights or can be reluctant to speak up.
The FWO also entered into 15 Enforceable Undertakings with businesses, which covered a total of $40.3 million back-paid to employees. These EUs involved backpayments of millions of dollars each from some of Australia’s largest employers including Suncorp, Australian Unity, David Jones, Politix, Crown Melbourne and Perth, Charles Sturt University, the University of Newcastle and University of Technology Sydney.
The workplace regulator also issued 2,424 Compliance Notices, resulting in $14.8 million in unpaid wages recovered. Fair Work Inspectors also issued 626 Infringement Notices for record-keeping or pay slips breaches, with total fines of $739,966 – 65 per cent more than in 2021-22.
Booth said it is vitally important for the regulator to explore and address the drivers of non-compliance and leverage education and engagement activities to achieve the purpose of the FWO – to promote harmonious, productive, cooperative and compliant workplace relations.
“I am incredibly proud to lead an organisation that delivers such important services for the community,” Booth said. “Through the agency’s sustained hard work, we have ensured that employees and employers across Australian workplaces have the help and latest accurate information they need. Of course, prevention is better for employer and worker alike.
Booth averred that the FWO will continue its intelligence-led, priority-driven work in 2023-24, targeting high-risk sectors including agriculture, building and construction, care, fast food, restaurants and cafés, large corporates and the university sector, while also prioritising small-business employers and employees, and vulnerable or ‘at risk’ workers.
