In one of the biggest cases of underpayment uncovered by the Fair Work Ombudsman, Australia’s largest toy retailer was found to have underpaid more than 1000 young employees a total of almost $1 million.
Illustrating the importance of effective award interpretation, the investigation found that Toys 'R' Us staff in stores across a number of states had been underpaid their minimum hourly rates and shift penalty rates between 2007 and 2009.
Fair Work Ombudsman Executive Director, Michael Campbell, said the scale of the underpayments was one of the largest his team had encountered.
"An extraordinary number of young and vulnerable employees were underpaid a large amount of money. We accept the contraventions were inadvertent and not deliberate," he said. It was reported that one employee was just 14 years old.
The investigation resulted in an enforceable deal with the company, ending the need for any further prosecution. Toys 'R' Us has been ordered to pay back all employees what they are owed and as part of the deal.
Toys 'R' Us has also agreed to donate $300,000 towards the cost of educating and training young workers and protecting their rights at work.
The settlement with the Fair Work Ombudsman also saw the toy giant agree to:
• SET UP a whistleblower hotline for its staff
• APOLOGISE in writing to all current and past employees;
• APPOINT external professional service providers to audit its pay and conditions, record-keeping and staff complaint procedures within three months and again within 18 months;
• SEND its payroll and/or human resources staff to accredited training courses for the next three years;
• ENSURE compliance with federal workplace relations laws and co-operate with the Fair Work Ombudsman in any future investigations; and
• POST a copy of the agreement and a signed copy of its letter of apology on its website.
In a letter to staff, Toys 'R' Us expressed its "sincere regret" and said the underpayments were a result of "inadequate processes".
A Toys 'R' Us spokeswoman advised that all employees affected by the pay discrepancies had received "complete restitution", and pledged it would not happen again.
So how can you safeguard your organisation from potential underpayment cases?
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 and South Australia's Irvine Transport, highlighting the importance of effective Award Interpretation and Time Management processes.
Mitrefinch's Employee Time Management System (TMS) takes 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.
If you would like discover how your organisation can benefit from more efficient Award Interpretation and effective Employee Time Management contact Mitrefinch today on 1300 884 931 or email sales@mitrefinch.com.au
You can't afford not to.
(Source: Herald Sun and Payroll News)
Managers around the country are preparing for a rise in sudden sickies this week, as the midweek public holiday for Australia Day prompts many to take an unofficial extra long weekend.
Absenteeism expert Paul Dundon, of Direct Health Solutions, told the Herald Sun that employers could expect a 15-20 per cent increase in sick leave on the Thursday and Friday after Australia Day.
While Chris James, spokesman for the Victorian Employers' Chamber of Commerce and Industry, agreed some employees would attempt to take two "sickies" to turn the public holiday into a five-day weekend.
Interestingly, a recent report, also found that public servants, especially those living near the coast, take more sick leave than their counterparts in the private sector, with an apparent spike in days off before and after weekends and public holidays.
Unplanned absenteeism is a major concern for many organisations and employers must consider both the direct and indirect costs incurred when an employee is absent.
Direct costs are the benefits paid to the employee to provide income during an absence i.e. Sick, holiday and vacation pay as well as a disability benefit. However the indirect costs associated with unplanned absence are typically ignored or poorly tracked yet they can have a considerable impact to an organisation’s bottom line.
Some indirect costs include;
- A decrease in productivity, resulting in missed business opportunities or reduced customer service
- Fees of the temporary staff required to cover for the absent staff, or overtime costs for other staff covering for their absent colleagues
- Weaken morale of staff forced to cover for absent colleagues, may have a knock-on effect, establishing a culture for “chucking a sickie”
So what can you do to control the impact of absenteeism?
As the old adage goes, “If you can’t measure it, you can’t manage it”. Organisations need to have an effective means of measuring staff absence in place, enabling them to assess the extent of the issue and decide the best means of tackling the problem.
A Time and Attendance system can monitor and record patterns of absenteeism, sick leave, and productivity, allowing you to establish any regular patterns or sudden unexplained changes.
For example, the Mitrefinch Time and Attendance solution, includes advanced Absence Management functionality allowing employers to profile staff by absence tracking. The system measures how the work absences of individual employees impact your business - by recording the number of absences and the duration of each incidence and providing a ‘score’ for each employee.
With this information readily and quickly available, management can identify workers suspected of abusing sick leave and possible absenteeism trends – allowing them to deal with problem areas before they do any more damage to the organisation’s bottom line.
So want to enjoy your Australia Day festivities without having to worry about a loss of productivity for the rest of the week? Then give us a call today on 1300 884 831 or visit Mitrefinch to find out more about effective Absence Management.
(Sources: “Sickies by the seaside: report points the finger”, SMH 8/12/10, Brian Robins and “Bosses brace for sickies following Australia Day”, Herald Sun 22/01/11, Staff Writers)
While many organisations invest in Time and Attendance systems to better track employee hours, as well as absences, there may be even more valuable information for senior managers and company directors locked within the statistical attendance data collected.
Consider the fact that a report released by the Productivity Commission, found that the effects of workplace stress, including bullying, cost Australian businesses up to $10 billion a year through absenteeism and poor productivity [1]. That amounts to alot of lost revenue that could potentially have been saved.
So what if your Time and Attendance system could find not only highlight idle employees, but also establish a link between absenteeism and workplace bullying or bad management?
A Time and Attendance system monitors and records patterns of absenteeism, sick leave, and productivity, allowing you to establish any regular patterns or sudden unexplained changes.
Does your company have a department that appears to be more efficient than the rest? Does that efficiency stand up once you factor in lost time due to illness, injury, and disability? Have you seen a spike in turnover in an area of your business where you’ve recently promoted a new manager.
Using this type of data can identify potential workplace bullying or manager/supervisor issues early on, allowing you to address the problem before it damages your business and your bottom line.
For more information on how a Time and Attendance system can benefit your business, why not give us a call today on 1300 884 831 or visit http://www.mitrefinch.com.au/?
[1] http://www.lawyersweekly.com.au/blogs/for_employees/archive/2010/05/20/workplace-bullying-a-major-issue-for-employers.aspx
A South Australian transport company has been forced to back pay almost $150,000 in penalty rates to 26 workers, it was reported today.
A random audit as part of the Fair Work Ombudsman's National Road Transport Industry Campaign found that the organisation had failed to pay some staff, mostly casual drivers and yard hands, penalty rates for weekend and public holiday work between March 2006 and January 2009.
The Fair Work Ombudsman said in a statement that it accepted the problem was due to ignorance rather than a deliberate failure to comply with the legislation.
The company has until late this year to make the back payments and write to affected current and former staff apologising for the error.
Ensuring that you are compliant with industrial awards and minimum terms and conditions can represent a major headache for many organisations.
Mitrefinch's Employee Time Management System (TMS) takes 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. If you would like discover how your organisation can benefit from more efficient Award Intrepretation and effective Employee Time Management contact Mitrefinch today on 1300 884 931 or email sales@mitrefinch.com.auRead the full story on ninemsn
