Aussie cleaners share in back pay pay out - how can you safeguard your business from an underpayment case?

Hundreds of cleaners across Australia are sharing in a $242,000 pay out after investigations by the Fair Work Ombudsman found they were being underpaid, reports the Canberra Times.

A total of 621 cleaners in Australia were rewarded back pay after Fair Work investigators looked into 315 companies as part of a nationwide campaign.

Of those 315 companies, 117 were found to have breached workplace law, with the most common breaches being underpayment of penalty rates and inadequate record-keeping practices.

United Voice branch secretary, Lyndal Ryan commended Fair Work Australia but said the issue went beyond the 11 employees.

''The problem of underpayment is probably not reflected in the figures because it is more widespread,'' she said.

Fair Work Ombudsman Nicholas Wilson advised that they were alerted to a potential issue within cleaning services when records between March 2006 and April 2010 showed it was generating the fourth-highest number of complaints.

So how can you safeguard your organisation from a potential underpayment case?

Ensuring that you are compliant with penalty rates and modern awards can represent a major headache for many organisations, with recent workplace cases such as Toys 'R' Us having to pay back up to $1 million to more than 1000 young employees, highlighting the importance of effective Award Interpretation and Time Management processes.

An automated Time and Attendance System can take the stress out of employee allowances and entitlement calculations via an in-built, fully customisable Award Interpreter.

Easily calculate base and overtime pay, weekend and public holiday penalties, as well as leave loading and shift penalties, ensuring consistent application of your business rules. A direct interface to your external payroll application further reduces payroll administration and the potential for costly payroll errors.

Visit our website to find out more about effective Award Interpretation and automated Time and Attendance Systems or feel free to call us on 1300 884 831 (Aus) or 09 363 9557 (NZ).

Follow us on Twitter and Facebook, or join our Linkedin group for updates on employee time management solutions.

Can you afford not to?