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Half of companies breaching Fair Work Act

Audits of the Fair Work Ombudsman have found that almost half of security companies were not compliant with workplace laws, with 62 percent of companies audited failing in Tasmania.

Fair Work OmbudsmanOf exceptional concern, the surprise audits of 16 Tasmanian security companies revealed 62 percent were not compliant with the Fair Work Act.

The Fair Work Ombudsman found six of the companies had record keeping and pay slip breaches, with four Tasmanian businesses breached the Fair Work Act for underpayment of staff totalling $40,000.

The Fair Work Ombudsman conducted 256 audits across Australia and found just under half (49 percent) of all security companies audited were non-compliant.

The Fair Work Ombudsman executive director, Michael Campbell, has urged employers to ensure workers are properly paid.

The audit was triggered after the Ombudsman launched legal action against Security Protection Services Pty Ltd last year, alleging it underpaid 47 employees a total of $176,000.

Nationally, the Ombudsman recovered $453,000 in back-pay for 652 workers who were found to have been underpaid.

Ombudsman executive director Michael Campbell says the decision to prosecute Security Protection Services comes about after the company failed to rectify the alleged underpayments or co-operate with workplace inspectors.

“The Workplace Ombudsman is seeking a court order for all money owed to workers to be repaid and for penalties against the company and Mr and Mrs Ruut,” he said.

Mr Campbell said the high number of offenders highlighted a need for ongoing education within the industry.

“This is not a job for the Fair Work Ombudsman alone and I urge all employer organisations, unions and large companies to help drive behavioural change,” Mr Campbell said.

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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