Importance of Maintaining Compliant Records

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Importance of Maintaining Compliant Records

All businesses in Australia are required, by law, to keep records and documents related to how their business operates (business.gov). Maintaining financial records enable you to track cash flow, prepare tax returns and understand your overall financial position. A former Caltex franchisee has found himself in hot water, landing himself a total of $77,708 in penalties for falsifying wage records for migrant workers.  

The Federal Circuit Court penalised Mohammad Arif Rana $11,540 and his family’s company, Abdul Wahid and Sons Pty Ltd, a further $66,168 for breaching the Fair Work Act.

Abdul Wahid and Sons Pty Ltd was formerly the franchisee of several Caltex service stations, including two outlets north-west of Sydney at Dural and Ermington.  

Mr Mohammad Arif Rana and the company admitted that they knowingly provided false and misleading records to Fair Work inspectors, they also contravened the laws which require issuing payslips to employees within one day of payday.  

Fair Work Ombudsman Sarah Parker has sent a reminder to business operators that they now face increased penalties of up to $126,000 per breach for serious false-and-misleading-records contraventions since the new laws came into effect.  

“The Fair Work Ombudsman is also enforcing new reverse onus of proof laws that require employers to disprove underpayment allegations in court when they have failed to keep accurate time and wages records. We urge any workers who are receiving incorrect information about time and wages on pay slips, or not receiving them, to contact us.” 

The court determined that the absence of accurate time and wages records prevented the inspectors from completing a thorough audit into whether the employees are the Dural and Ermington stores had been paid their full lawful entitlements.  

As an outsourced managed payroll provider, PaysOnline helps you maintain and keep compliant records. Don’t risk noncompliance – ensure you’re meeting all your obligations as an employer with PaysOnline fully managed payroll. Contact us today for a quote.

Any employers or employees can contact the Fair Work Infoline on 13 13 94 or search www.fairwork.gov.au.  

Source: Fair Work Ombudsman

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