Protecting vulnerable workers amendment – what you need to know
All businesses should be reviewing the way they manage the risk of underpayment and worker exploitation as the Federal Government’s reforms to protect vulnerable workers are about to take effect.
(Want to know how we got here? Read about what happened at Caltex and the labour-hire company that paid its employees nothing but tomatoes.)
1. Higher penalties for serious contraventions
Under the new laws, there will be a tenfold increase in penalties available under a new category of ‘serious contraventions’ of the Fair Work Act. For each such contravention, the maximum penalty will be $630,000 for companies and $126,000 for individuals.
These higher penalties will apply where the contravention:
- relates to a civil penalty provision, such as a breach of the National Employment Standards, an award, enterprise agreement or an employer’s record keeping obligations, and
- was knowingly committed as part of a systematic course of conduct.
The new laws recognize that the new category of ‘serious contraventions’ can capture unlawful conduct which is express, tacitly or impliedly authorized by a company.
This means that significantly higher penalties can now be imposed on companies and individuals who are involved in repeat instances of underpayment or other unlawful conduct which is perpetuated by policies or practices that are inconsistent with workplace laws.
Do you need more detail on this subject? Head on over to the full article HERE for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on (0434) 048 843.
All the best!
Nicholas