FWO recovered $473m for 160,000 underpaid workers

Large corporate employers make up 70pc of the $473m in backpayments, which now total an extraordinary $1.5bn in three years.

The Fair Work Ombudsman recovered $473 million for nearly 160,000 underpaid workers in 2023-24.

The Fair Work Ombudsman recovered $473m for nearly 160,000 underpaid workers last financial year, with 70 per cent of the backpayments made by large corporate employers.

The $473m is the third highest annual figure recorded by the FWO, taking backpayments to underpaid workers to an extraordinary $1.5bn across the last three years.

The FWO recovered $532m for 384,805 underpaid workers in 2021-22, and $509m for 251,475 underpaid workers in 2022-23.

Big companies back-paid a combined $333m to nearly 110,000 underpaid employees in 2023-24, with a cumulative $877m back-paid since July 2020.

Major FWO litigation outcomes in 2023-24 included the securing of $10.3m in penalties against the Commonwealth Bank of Australia and CommSec, more than $4m in penalties imposed against the operators and managers of Din Tai Fung restaurants, and more than $1.4m in penalties against the franchisor of the 85 Degrees brand in Australia.

The FWO entered into 15 enforceable undertakings with businesses, which included a total of $30.2m back-paid to employees.

Most of the enforceable undertakings involved back-payments of millions of dollars each from some of Australia’s best known employers including Best & Less, Starbucks Coffee Australia, Optus Retailco, Insurance Australia Group Limited, Eagers Automotive Limited and World Vision Australia.

Litigations initiated by the regulator led to $21.2m in court-ordered penalties while the issuing of 2574 compliance notices resulted in the recovery of $16.9m in unpaid wages.

Nearly $8m of the total penalties imposed in the regulator’s completed court cases related to employers of migrant workers and visa holders, including the Din Tai Fung case.

Acting Fair Work Ombudsman Michael Campbell said the regulator had “created a firmer culture of accountability across workplaces where Australia’s largest employers, like all others, are expected to prioritise compliance”.

“The success of these efforts means both that workers have money they were owed back in their pockets, making a real difference in their lives, and that there is a level playing field for all those employers doing the right thing,” he said.

“Our investigations and enforcement actions send a clear message that employers must place a higher priority on ensuring they are meeting their workers’ legal entitlements, and that includes by improving their payroll systems and governance, and investing in advice.

Fair Work Inspectors also issued 760 Infringement Notices for record-keeping or pay slip breaches, with total fines of $986,616 – an increase from 626 Infringement Notices in 2022-23 and $739,966 in fines paid.

“We are continuing our intelligence-led, priority-driven work in 2024-25, targeting high risk sectors including aged care services, agriculture, building and construction, disability support services, fast food, restaurants and cafés, large corporates and universities,” Mr Campbell said.

“We retain our enduring priorities of assisting small business employers and employees, and vulnerable or ‘at risk’ workers.”

Migrant workers, who can be vulnerable to workplace exploitation, were over-represented in terms of anonymous reporting to the FWO. They made more than 4000 reports, accounting for nearly a quarter of all reports received.

“Migrant workers are reminded that they have the same workplace rights as anyone else in Australia. Anyone with concerns about their workplace rights or obligations should contact us for free advice and assistance,” Mr Campbell said.