$84K for underpaid textile, clothing workers amid wide compliance failures

More than $84,000 will go to 138 underpaid textile workers with only half of 371 audited businesses found to be rules-compliant.

Acting Fair Work Ombudsman Kristen Hannah, above, says the textile, clothing and footwear sector was targeted because of its vulnerable workforce, which included an unverified number of outworkers.

More than $84,000 has been recovered for 138 underpaid textile, clothing and footwear (TCF) workers after an investigation found only half of 371 audited businesses were compliant with their workplace relations requirements.

More than 100 businesses have been ‘‘put on notice’’ by the Fair Work Ombudsman for record-keeping breaches.

Individual underpayments included $10,319 for a worker who did not receive required pay progressions for six years.

Fair Work inspectors issued 107 formal cautions, 31 infringement notices and four compliance notices.

Businesses selected for audit were generally considered to be at a high risk of non-compliance, taking into account previous interactions with the Fair Work Ombudsman and use of outworkers.

Inspectors found 78 per cent of the audited businesses were paying their workers correctly. Of those found to be non-compliant, breaches mainly related to record-keeping and pay-slip obligations.

Many non-compliant businesses were found to have breached award requirements specific to outworkers due to their recognised vulnerability in the sector.

These include obligations for employers who outsource any aspect of their production to register with the appropriate Board of Reference, maintain a list of individuals or businesses they outsource work to, and supply a copy of a written agreement to the outworker.

Acting Fair Work Ombudsman Kristen Hannah said the sector was targeted because of its vulnerable workforce, which included an unverified number of outworkers and a high proportion of women, migrants and older workers.

“Outworkers work away from business premises at the end of supply chains and can be difficult to identify, making accurate records particularly important for ensuring their working conditions are compliant with workplace laws,’’ she said.

‘‘Employers at all levels of the supply chain need to be aware of their workplace obligations and of community expectations that they be held accountable where these are breached.

“We are particularly concerned by the high rate of record-keeping breaches in this sector and have placed more than 100 employers on notice,’’ Ms Hannah said.

‘‘Businesses now face higher penalties for failing to keep the right records, and a reverse onus of proof when it comes to disproving underpayment allegations in court.’’

The textile, clothing and footwear sector engages over 33,000 workers across more than 6370 businesses.