The Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 has gained royal assent on the 14th of September and has now come into effect.

The Act will implement higher penalties for employees who are responsible for underpayments, false or misleading information or records and additionality it has presented a new category of serious infringements.

The changes apply to all employers, companies, and employees covered by the Fair Work Act but are particularly important for:

  • Franchisors and holding companies.
  • Vulnerable employees.
  • Companies who do not cooperate with or support Fair Work Ombudsman investigations.

The new law will hold certain franchisors and companies responsible for underpayments by their franchisees where they knew, or reasonably should have known, about the contraventions and failed to take reasonable steps to prevent them. This means new, higher penalties for serious infringements and breaches of workplace laws and record keeping responsibilities have already begun.

Summary of key changes as listed by Fairwork Australia:

  • Certain franchisors and holding companies become responsible for underpayments by their franchisees or subsidiaries where they knew, or reasonably ought to have known, about the contraventions and failed to take reasonable steps to prevent them.
  • Newly introduced serious contraventions have been introduced and will be implemented. Penalties have been increased up to ten times the current maximum where employers knowingly breach and have recurring patterns of contravening conduct
  • New penalties will apply to those who provide Fair Work inspectors with false or misleading information, records or report. There are also new prohibitions for hindering or obstructing them.
  • The prohibitions against unreasonably requiring employees to make payments, commonly seen as cashback arrangements, have been strengthened and extended to prospective employees.
  • Past maximum penalties for record-keeping and pay slip breaches have been doubled, and the maximum penalty for false or misleading employment records has been tripled. New penalties have also been introduced that apply to companies and employers giving false or misleading pay slips.
  • If employers do not meet obligations in regards to record keeping or pay slip responsibilities and cannot show a reasonable excuse, they will need to disprove wage claims made in a court.
  • The Fair Work Ombudsman’s now have increased strength and administration in evidence-gathering powers.

For more information visit: https://www.fairwork.gov.au/

Information sourced at: https://www.fairwork.gov.au/about-us/news-and-media-releases/2017-media-releases/september-2017/20170915-protecting-vulnerable-workers-bill-royal-assent

 

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