Mr. AUZ…Come on in (Did I Pass?), No…you Failed – Mr AUZ Falls Short in HR and Payroll Administration

Posted on 25/05/2024 at 9:38 am

By admin

Below is a list of Australian (Mr. AUZ) Companies caught for Underpayment of Wages  in Australia. The top 2 both exceed the amounts calculated for  500+ business caught for underpayment of wages in the UK during 2023.

What does this mean.

Well it means Mr. AUZ has failed. In the grand scheme of things, this indicates that there is a serious problem with Payroll and HR practices in Australia. The excuse being used is its the tech systems being deployed in the Payroll function. Well its likely that many Australian Payroll departments are utilizing the same or if not the same, then similar systems being used in the UK. Global accessible Payroll systems such as ADP, Lano, Deel, Multiplier, Remote, Papaya Global are to name a few.

So if the systems are similar then how does Australia fall so short of the UK.  We have  heard that the Australian Industrial Relations framework is complicated but is that really an excuse. There is another likely cause and that is the fault being in the competency of the people administering your employment agreements as well as the ongoing communication to Payroll by these same people. This ongoing communication to Payroll is essential due to the consistent changes in variables related to the weekly remuneration of your employees.

Some Australian Operating Businesses Recent Employee Underpayments:

• BHP – $427 million underpayment
• Woolworths Group – $300 million underpayment
• Coles Group – $20 million underpayment
• Commonwealth Bank of Australia – $16 million underpayment
• Qantas Airways – $7.8 million underpayment
• Wesfarmers Limited – $6 million underpayment
• Bunnings Warehouse – $4.7 million underpayment
• Super Retail Group – $2.6 million underpayment
• Myer Holdings – $2.1 million underpayment
• Cotton On Group – $2 million underpayment
• McDonald’s Australia – $1.4 million underpayment

Top 10 Businesses in UK caught for Underpayment of Wages and amounts for Underpayment (Arrears) 2023:

Source: gov.uk

The top 500 (UK) in total – remain less than each of Australia’s top 2.

Not looking good Mr. AUZ. .

Remember…The Fair Work Ombudsman (FWO) will be responsible for investigating suspected underpayment offences and from 1st January 2025 heavy penalties apply.

Contact HR Chief now and arrange a Payroll audit to ensure your business is meeting or better,  exceeding the minimum pay rates for your employees as determined by legislative instruments.

Depending on your employee numbers, number of operating jurisdictions, the current state of your industrial agreements and framework, a Payroll audit could be quick or it may take some time to fully understand your exact position of compliance or worse – non compliance.

Unfortunately, ignorance is no excuse when it comes to wage theft. Besides, you owe it to your employees. Not much point harping on about your great culture when your business silently short changes your employees.

You may have heard “Culture eats Strategy for breakfast” well…underpaying your employees or worse; “Wage Theft” FRICKEN eats your culture for lunch.

I could go on but I think you have got the point.

Contact HR Chief now to arrange a Payroll audit to ensure your business is meeting or better,  exceeding, minimum pay rates.

Paul Marshall

Partner | HR Chief | FCPHR

With decades of Business and HR experience a HR Pro, corporate trainer, author and a welcomed and trusted business partner with commercial awareness and  expertise in people, performance and HR capabilities .

Author of:

103 Golden Tips to Turbo Charge your Employees Skyrocket Productivity and Get More Output

103 Golden Tips to Turbo Charge your Business make More Money and Get Rich