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In the recent decision of FAIR WORK OMBUDSMAN v DAVDOT PTY LTD & ANOR [2018] FCCA 2682 the Federal Circuit court imposed penalties of $ 144,000.00 against the employer for failing to pay individual employees their correct entitlements under the Award and for failing to provide them with payslips in terms of the Fair Work Act. Of importance would be the imposition of civil penalties for failing to provide the employees with a payslip within one working day of paying amounts to the employees in relation to the performance of work; and failing to make and keep employee records as prescribed by the Fair Work Regulations 2009 (Cth) It would appear that the employers believed that the mistake occurred due to the Industrial Relations (IR) practice of paying the employees a Flat Rate of Pay. Most Awards allow an employer to pay a flat rate of pay in satisfaction of entitlements; it is, however, important to remember that an agreement to pay a Flat Rate of Pay does not excuse the employer from complying with the obligation to set out the detail in a payslip of Penalties and Loadings earned by the employee during the relevant pay period. Should you have any queries – Please contact us on 9792 4451, and book your complimentary 20 minute consultation so that our Associates can explain how to assist you.
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