Late last
month, a Victorian cleaning business learned that deducting or withholding
monies from employees is not permitted except in very specific circumstances.
Oz Staff Career Services Pty Ltd employed 102 casual cleaners pursuant to the Cleaning Services Award 2010. The employer deducted monies from its employees’ pay for meals without authorisation on three occasions over two months.
After conducting an audit of the business, the Fair Work Ombudsman took legal proceedings in the Federal Circuit Court against the company and its chief executive officer. It was found that the employer contravened the Fair Work Act 2009 (Cth).
Under the Act, employer deductions are prohibited, unless the employee has provided written consent. The employee must expressly agree to reimburse the employer for any costs to be deducted from any final termination payment and must specify the amount of the deduction. This authorisation can be withdrawn in writing at any time.
A failure to comply with these requirements may breach your obligations as an employer under the Act, leaving you liable to civil penalties of up to $61,000 per breach.
If you believe you are entitled to recover monies from employees for overpayments or permitted deductions, contact the Workplace Relations team to Nevett Ford on (03) 9614 7111 to ensure that you comply with your requirements as an employer and avoid the risk of litigation and penalties.
Oz Staff Career Services Pty Ltd employed 102 casual cleaners pursuant to the Cleaning Services Award 2010. The employer deducted monies from its employees’ pay for meals without authorisation on three occasions over two months.
After conducting an audit of the business, the Fair Work Ombudsman took legal proceedings in the Federal Circuit Court against the company and its chief executive officer. It was found that the employer contravened the Fair Work Act 2009 (Cth).
Under the Act, employer deductions are prohibited, unless the employee has provided written consent. The employee must expressly agree to reimburse the employer for any costs to be deducted from any final termination payment and must specify the amount of the deduction. This authorisation can be withdrawn in writing at any time.
A failure to comply with these requirements may breach your obligations as an employer under the Act, leaving you liable to civil penalties of up to $61,000 per breach.
If you believe you are entitled to recover monies from employees for overpayments or permitted deductions, contact the Workplace Relations team to Nevett Ford on (03) 9614 7111 to ensure that you comply with your requirements as an employer and avoid the risk of litigation and penalties.
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