Home topics finance advice Credit: Money Knack Advice Advice Staying compliant with pay laws in Australia Yajush Gupta May 12, 2023 Chemist Warehouse is currently facing a legal challenge over alleged underpayments, which may result in a $10 million backpay bill for hundreds of its stores nationwide. The legal action has been taken by the Shop Distributive and Allied Employees Association against four South Australian franchisees of the discount pharmacy, which are owned by co-founders Jack and Sam Gance, as well as group head Mario Verrocchi. It is claimed that these franchisees underpaid nine staff members while they were working in higher positions. Navigating Australia’s pay system can be quite challenging, especially with the Awards system in place. The Media Award, for example, has about 15 different levels of journalist editors, each with varying pay rates depending on weekend and overtime work and other factors such as whether they work for a major publication, digital publication, or rural paper. This complexity often results in underpayment, which is a prevalent issue in Australia. Many businesses unintentionally pay their employees less than the minimum wage they are entitled to. The complexity of the Awards system, which has potentially hundreds of different pay scales, is one of the main reasons for underpayment. For small and medium-sized enterprises (SMEs), it’s crucial to clearly understand the relevant Awards and pay scales that apply to their employees to avoid legal and financial consequences. According to Ben Thompson, running payroll in Australia is a complex process for