Turnbull Government wants to Crack Down on Dodgy Bosses

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Turnbull Government wants to Crack Down on Dodgy Bosses

Cracking down on dodgy bosses

Payroll is the platform in which employers are able to compensate their hardworking employees. However, doing it correctly comes with a long list prerequisites to adhere too to ensure that you’re remaining compliant or not. PaysOnline is a managed payroll provider, which gives clients access to custom-built advanced technology that is backed by experts who can help when you need it the most. Outsourcing your company’s payroll to a managed payroll provider means you can do away with payroll stresses and focus on the core of your business.

The Turnbull Government has today introduced legislation to protect vulnerable workers and crack down on unscrupulous bosses who break the law.

The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 delivers on an election commitment to ensure workers are protected from exploitative and unfair practices in the workplace.

Last year, all decent Australians would have been appalled at video footage of young 7-Eleven workers being led to an ATM and forced to hand back part of their wages in cash,” Minister Cash said.

We’ve also been appalled at recent revelations of systematic underpayment of employees by some franchisees of well-known pizza chains.”

While this does not represent the vast majority of Australian business owners who work hard, follow the rules, create jobs and provide the backbone of our economy, such cases have shown existing laws lack teeth and need to be strengthened.”

The Government say the Bill will help deter, catch and punish unscrupulous bosses and protect responsible employers, by:

  • Making it clear employers can’t directly or indirectly request unreasonable payments from their staff. This outlaws the ‘cashbacks’ practice recently exposed at 7-Eleven.
  • Increasing the penalties ten-fold for serious contraventions involving deliberate and systematic underpayment of workers (as opposed to one-off mistakes). Penalties are also being increased for those who falsify pay records. These penalties will not apply to inadvertent breaches or honest mistakes.
  • Holding head office responsible for underpayments where three conditions are met:
    • The head office has significant influence or control over their franchisee or subsidiary,
    • The head office knew or should reasonably be expected to have known of the underpayment or related breach, and
    • The head office failed to take reasonable steps to prevent the breach from occurring.

This means that those who are complicit or wilfully blind to underpayments in their network will be responsible for rectifying those underpayments.

  • Strengthening the Fair Work Ombudsman’s powers, so they can more effectively investigate breaches of workplace laws and overcome the culture of fear that often prevents vulnerable workers from coming forward and giving evidence. The Turnbull Government has also already boosted the FWO’s funding by $20 million, so it can more effectively enforce the law.

The new laws build on steps already taken by the Coalition Government to stop visa laws being abused and foreign workers being underpaid.

They’ve made it a criminal offence for employers to solicit or receive a payment in exchange for a visa sponsorship and now require a valid payslip as proof of lawfully paid work before a second working holiday visa can be granted to a temporary migrant worker.

Minister Cash said, “A strong employment system requires all parties to abide by fair rules. . Importantly, this legislation is targeted at those who deliberately set out to do the wrong thing. The new increased penalties and liability provisions will not impact the vast majority of employers who do the right thing, or who simply make honest mistakes.”

Managed Payroll is the Answer!

By outsourcing your payroll to a managed payroll provider such as PaysOnline you can rest assured that we will be helping you to remain compliant and fulfil your obligations as an employer.

Stay compliant!  Contact PaysOnline today for more information on our best practice payroll solution!

(Source: Michaelia Cash, Minister for Employment)

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