The ABC has joined the list of Australian companies who have admitted to underpaying approximately 2,000 current and former casual employees between October 2012 and February 2019.

The underpayments are due to some casual staff members being paid a flat hourly rate which wasn’t sufficiently high enough to compensate for overtime rates, penalty rates and allowances due to them, and others being paid less than the national minimum hourly rate.

Back payments ranging from $7 to $180,000 have already commenced, including interest of 5.25% and superannuation, with full remediation to be complete by 31st of July 2020.

The Enforceable undertaking was provided to the ABC because they self-disclosed the non-deliberate breaches, are cooperating with the FWO investigation, fast-tracking backpay and improving processes to ensure future compliance. An independent expert will be used to carry out annual audits of their workplace compliance for the next three years, an electronic record-keeping and rostering system will be used and Payroll and HR staff will be provided with training to avoid further underpayments.

The ABC must also pay $600,000 to the Commonwealths Consolidated Revenue Fund in recognition of the civil penalties that would have been imposed by a court if the ABC had not self-reported and to provide deterrence for any future noncompliance.

What happened at the ABC demonstrates the importance of correctly paying employees and ensuring that employees are actually better off overall by being paid a flat hourly rate which is clearly documented in an employment contract and individual flexibility agreement.

If you require assistance with determining correct pay for employees ProcessWorx can help your business contact us on  (08) 9316 9896 or enquiries@processworx.com.au

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