Be aware of penalty rates and pay accordingly!

Penalty rates are higher pay rates that employees need to be paid for working particular hours or days and are dictated within Modern Awards. Employees may be entitled to a penalty rate when working:

• weekends

• public holidays

• overtime

• late nights shifts or

• early morning shifts.

It is imperative that businesses ensure that the correct penalty rates are applied and paid to their employees or there is a genuine risk that Fair Work will investigate and penalise businesses where underpayments are evident.

Recently, in Newcastle, NSW, the Fair Work Ombudsman recovered $281,729 for 305 underpaid employees across 30 food outlet businesses, following surprise inspections. The inspections were prompted by intelligence from a range of sources, including anonymous reports.

The most common breach was underpayment or failure to pay penalty rates, apply casual loading and underpayment of minimum wages for ordinary hours. There were also eight Infringement Notices for payslip and record-keeping breaches resulting in $22,497 in fines paid. Two businesses remain under investigation.