A northern New South Wales wheat farm operator has been ordered to pay more than $110,000 after underpaying a former employee and failing to comply with a Fair Work Compliance Notice. The Court imposed a penalty of almost $30,000, in addition to ordering the business to repay more than $80,000 in outstanding wages, interest and superannuation.

The underpayments related to minimum wages under the Pastoral Award 2010 and accrued annual leave entitlements. The Court found the employer had been given multiple opportunities to rectify the issue but failed to take corrective action.

While the case highlights the importance of complying with Fair Work Compliance Notices, it also shows that employers should be confident their pay arrangements are correct before concerns are ever raised. Regularly reviewing Award classifications, employee entitlements and payroll practices can help identify potential underpayment risks early and prevent issues from escalating into costly legal proceedings.

To help reduce risk, employers should:

• Regularly review employee classifications and Award coverage.
• Ensure wages, allowances and leave entitlements are being paid correctly.
• Stay up to date on recent pay compliance changes.
• Review payroll arrangements when employee duties or work patterns change.
• Respond promptly to any Fair Work enquiries or Compliance Notices.
• Seek advice early if you’re unsure whether your pay arrangements remain compliant.

Conducting a Better Off Overall Test (BOOT) is a great way to assess whether employees are genuinely better off overall under their current pay arrangements and identify any areas that may require adjustment. If you’d like to arrange a BOOT or discuss your current pay arrangements, contact us on (08) 9316 9896 or get in touch here.

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