After a slew of underpayments being reported in the media, Woolworths has confirmed they have underpaid 5,700 salaried team members - with remediation expected to be in the range of $200-$300m.
In general, if staff are underpaid, it is not simply a matter of making a once-off remediation payment. Underpayment of wages means there has also been an underpayment of superannuation entitlements; this in particular will incur significant penalties and charges. In addition to this, making a lump sum remediation payment may have detrimental effects on your business' cash flow, which can have harsh consequences on the way in which your day to day business is run.
We cannot stress the importance of ensuring that staff are paid at the correct rates. To ensure that your staff are being paid correctly, the Fair Work Ombudsman's Pay and Conditions Tool is helpful, as is their guide to audit your pay rates.
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