How to avoid underpaying your staff.

 

The start of 2020 has seen some of the biggest names such as Bunnings, Woolworths, Target, Crust and Qantas to come under fire for underpaying their staff, totalling at least $300 million to be back paid to staff.

Since the announcement of these mistakes, the biggest question that has risen for many people has been, “how does that happen in the first place?”.

It’s a lot easier to underpay staff than you think, especially when you do not have preventative practices in place to protect your staff and your business.

The issue is not just one that affects big business, but 79% of hospitality employers fail to provide the correct wage to their staff.

Five easy steps to audits payments to your employees are:

  • Review and update all employee information
  • Audit all staff pay records to ensure they are compliant with the entitlements
  • Identify any discrepancies that arise from the historical audit and notify the employee.
  • Back-pay all owed entitlements that historically were underpaid.
  • Audit compliance process to reduce risk of future underpayments of wages and benefits.

It’s time to be proactive and ensure that you undertake your own regular reviews to ensure your business is compliant and isn’t likely to be subject to criminal charges in months and years to come.

 

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Marisa Ross

HR Advisor

Marisa is an experienced and motivated HR professional with a strong HR generalist and business operations background with a focus on employee relations, performance management, leadership training & development, workers compensation & injury management, and employee retention. Marisa holds a Bachelor of Human Resource Management and a Bachelor of Behavioural Science with a minor in Counselling. Having worked in a variety of industries from SMEs to large blue-chip organisations, Marisa is passionate about enriching employee experience, employee retention, and building leadership capability in people management.

Aimee Grigson

Aimee Grigson

WHS Advisor

Aimee has a strong understanding of Workplace Health and Safety Legislation and standards and has extensive HSEQ experience in a number of industries. Aimee has a great ability to engage across all levels of organisation, including field teams, leadership and external stakeholders. Aimee ensures Health and Safety Management Systems are compliant to legislation, effectively implemented and understood by all. Aimee has a Certificate IV in Work Health and Safety and qualifications in auditing and incident investigations. Aimee is passionate about coaching and developing small businesses towards a positive safety culture.