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Withholding termination pay costs Qld firm $40,000

Staff reporter
13 October 2017 1 minute readShare

A Queensland business has been slapped with a $40,000 bill to reimburse a former worker who was found to have not been paid appropriate entitlements following termination of employment.

The Fair Work Ombudsman (FWO) found that the former open cut mine supervisor has been entitled to a redundancy payout and payment in lieu of notice after their Kangaroo Point employer terminated their contract.

The business also reportedly failed to payout the worker’s annual leave entitlements.

Since the FWO’s intervention, the business has since paid back a total of $40,000 to the worker.

Two other businesses in the Sunshine State, both in the hospitality sector, have also been forced to pay back a combined $33,279 after being found to have used improper hourly rates to pay workers.

One of the companies used flat rates which exceeded the legal minimum for ordinary hours, however did not account for the penalty rates applicable on weekends – changes to which are now in force following a recent court verdict.

Ombudsman Natalie James said that not only do businesses face the risk of fines for improper wage payment, but that businesses issued warning for non-compliance are also subject to follow-up audits in a bid to ensure mistakes are properly addressed.

“Repeat offenders can expect to face enforcement action including potential litigation and significant court penalties,” Ms James said.

Withholding termination pay costs Qld firm $40,000
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