By Catherine Ngo Senior Editor and Content Writer, My Business

Under the Fair Work Act, posting a job advertisement with pay rates that fall below those mandated by the Act, a modern award, or an enterprise agreement is now deemed a contravention of the law.

The changes came into effect in early 2023, which allowed the Fair Work Ombudsman the authority to penalise businesses that post misleading job advertisements. This development ensures employers provide accurate and transparent information in their job listings.

Job advertisements must comply with the Fair Work Act and applicable fair work instruments, such as awards or enterprise agreements. This means that job ads should not include pay rates that fall below employees' minimum entitlements.

For pieceworker positions where employees are also entitled to a periodic rate of pay, such as an hourly or weekly rate, employers must specify the applicable periodic pay rate in the advertisement or state that a periodic pay rate will apply.

These requirements apply to all job ads posted on or after January 7, 2023, regardless of the initial posting date. Employers who breach these provisions may face fines unless they have a valid excuse for non-compliance.

The regulatory body announced that it had issued 181 infringement notices since the changes took effect, resulting in penalties totalling $89,000. One incident involved a hospitality business offering workers an extremely low hourly wage of $7.

The Fair Work Ombudsman, Anna Booth, emphasised the regulator's commitment to eliminating misleading advertisements that attract vulnerable workers into exploitative working conditions. 

"Advertising your intention to pay employees $7 per hour, for example, is precisely the sort of unacceptable conduct that the Fair Work Ombudsman wants to stamp out," she said.

In another case, a business was fined $1,375 for a misleading job advertisement.

The Fair Work Ombudsman brought attention to a business that initially defended its job advertisement, claiming the advertised pay was marginally close to the introductory rate for workers under 17 years of age. However, the watchdog is particularly concerned about the impact of such ads on migrant workers.

Research indicates that migrant workers are particularly susceptible to wage underpayment and face significant hurdles in pursuing their unpaid wages through the small claims process. The Ombudsman emphasises the importance of promptly addressing exploitative job ads to protect these vulnerable workers.

Beyond imposing fines on existing job ads, the regulator is also petitioning job listing websites to address the issue of dodgy ads at the source. This involves ensuring that job ad platforms inform businesses about their obligations to post appropriate wages.

To facilitate this, job websites are requested to make it easier for employers to include legal wage rates in their ads. This can be achieved by allowing employers to enter their specific wage figures rather than relying on preset ranges.

NEED SUPPORT?

Need help understanding minimum wages, overtime, leave entitlements or correct procedures for termination or redundancies? Our Workplace Advice Line team handles over 26,000 calls from Australian businesses every year.

Our Workplace Advice Line team can support you across a range of issues that may arise within your workplace, such as: 

  • Interpreting awards and provisions
  • Wage rates
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  • Leave provisions such as personal leave, long service leave, annual leave and parental leave
  • Contracts of employment
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Catherine Ngo Senior Editor and Content Writer, My Business

Catherine is passionate about unravelling the latest news and insights to help entrepreneurs, small business owners and employers.