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Could you (your business) afford to pay $100,000 in fines? "Pfft yeah right" I hear you say...

Not sure about you and your small/medium business, but not one of my clients have a spare $91,800 lying around to pay infringements of the Fair Work Act.

A café owner in Canberra now has to find a spare $91,800 to pay the penalties issued to him by the Fair Work Commission for not issuing three of his employees with payslips. Another employee was receiving payslips but only intermittently and those he did receive didn't contain the correct details as required under the Fair Work Act.

Not sure about you, but not one of my clients have a spare $91,800 lying around to pay such a penalty for breaching the Act. And with Natalie James (Australia's Fair Work Ombudsman) welcoming the Governments' current commitment to increasing penalties for serious record-keeping contraventions, this $91,800 could triple. "We support the Government's proposal to increase penalties for serious record -keeping contraventions." Says Ms James.

The financial penalties explained

To explain the financial penalty breakdown - the café owner faces penalties of up to $5,100 per employee that wasn't issued a payslip, while his business entity will also need to pay penalties of up to $25,500 per employee that wasn't issued a payslip. Ouch indeed!

HR Tactics urge you to get clarity around the 'must do's' when it comes to managing staff in line with employment legislation like the Fair Work Act and WHS Act because the cost of reducing your risk is a whole lot cheaper than forking out for the hefty penalties. As an SME owner you might have all your business finances tied up in your home etc and if the business goes down, so does your home... Reduce your risk - get advice!

We specialise in providing this type of compliance advice to SME's. Contact us (or your current HR advisory service) sooner rather than later if you are at all concerned about whether your current HR practices fully comply and we can discuss as much or as little as you need to. Or consider our $100/month HR Now subscription where you can call us anytime to ask your HR questions and get instant answers and practical easy to implement solutions.

HR Tactics - dedicated to assisting SME's keep their doors open!

Jackie Strachan 0406 146 116

www.hrtactics.com.au

jackie@hrtactics.com.au