In these difficult economic times it is common for small
businesses to experience liquidity and cash-flow problems. Under
these situations it is natural for a small business to concentrate
on paying those people that keep the business afloat. However, it
is important that a business does not disregard its obligations as
an employer.
It must be emphasised that Fair Work Australia considers that
financial difficulties and/or a lack of knowledge regarding the
relevant industrial laws and rates of pay do not justify a failure
to provide adequate pay for your employees.
The case of FWO v Promoting U Pty Ltd & Anor [2012] FMCA
58 is a good example of the consequences which can result from
underpaying employees. Promoting U and its director, Sebastian Boi
('the respondents') were found to have committed 16
breaches of workplace relations laws including underpayments and
record keeping breaches.
