In
a brilliant piece of spin worthy of an election campaign, George Calombaris
openly admitted to underpaying past and present employees over $2.9 million –
and has maintained his positive public image.
From
the papers to The Project, the popular Masterchef appeared everywhere,
apologised for profiting from his workers and continued to accept bookings at
his numerous Greek restaurants across Melbourne.
You
would be forgiven for thinking that it’s all that easy – underpay, apologise,
back to business as usual – but be warned, this is the exception, not the
rule.
Businesses
that are found to breach the Fair Work Act 2009 are liable to penalties of up
to $54,000 for corporations, per breach. This means that if you underpay
100 employees, you are liable to 100 lots of penalties. Directors also face
penalties of upon $10,800 per breach.
Last
year, the Fair Work Ombudsman recovered more than $2.2 million dollars in
penalties alone for underpaid employees.
For
George Calombaris’ Made Establishment empire, the repayments will be made
quickly and easily, as the investors in the business have continued to pledge
their financial support for the company.
Other
businesses are not so lucky and have had to enter into voluntary administration
after being ordered to back-pay their workers.
If
you are unsure of how much to pay your employees in order to fulfil your
obligations under the relevant employment contract, modern award or enterprise
bargaining agreement, talk to someone who knows the answer! Contact the
workplace relations team at Nevett Ford for all your employment law questions
on (03) 9614 7111.
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