February 13, 2017
If you’re a young employee – or employ a young worker – the Fair Work Ombudsman’s office has its eye on you.
Between July 2011 and June 2016, the Fair Work Ombudsman (FWO) received more than 27,000 requests for assistance from young workers and recovered more than $18 million for young workers who had been short-changed by their employers.
The FWO aims to bust a string of common myths that are contributing to young workers being underpaid.
Fair Work Ombudsman Natalie James said too many people believed that a range of workplace practices were okay when in fact they were illegal.
“Last year 44 per cent of the litigations we filed in court involved young workers,” she said.
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Ten common young worker myths:
MYTH 1: Paying low, flat rates of pay for all hours worked is okay if the worker agrees.
FACT: Minimum lawful pay rates are mandatory. In many jobs, penalty rates must be paid for evening, weekend, public holiday and overtime work.
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MYTH 2: Lengthy unpaid work trials are okay.
FACT: Unpaid trials are only okay for as long as needed to demonstrate the skills required for the job. Depending on the nature of the work, this could range from an hour to one shift.
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MYTH 3: Employees don’t need to be paid for time spent opening and closing a store or for time spent attending meetings or training outside their paid work hours.
FACT: If a meeting or training is compulsory, then it is work. Employees must be paid for all hours they dedicate to work and this includes time spent opening or closing a store. For example, if an employee is required to be at work at 7:45am to prepare for an 8:00am store opening, they need to be paid from 7:45am.
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MYTH 4: Employers can make deductions from an employee’s wages to cover losses arising from cash register discrepancies, breakages and customers who don’t pay.
FACT: Unauthorised deductions from an employee’s pay are unlawful. Deductions can be made only in very limited circumstances.
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MYTH 5: Employees are obliged to buy store produce such as clothing or food.
FACT: Employers cannot require staff to purchase store produce. This includes any items for which the worker may receive a staff discount. For example, an employer cannot require workers to purchase the particular clothing stocked in a retail outlet.
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MYTH 6: Unpaid internships are okay for all inexperienced young workers looking to get a foot in the door.
FACT: Internships can only be lawfully unpaid when they are a requirement of a course at an authorised educational or training institution.
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MYTH 7: Employers can pay young workers as “trainees” or “apprentices” without lodging any formal paperwork.
FACT: Employers must negotiate and lodge a registered training contract for an employee in order to lawfully be able to pay trainee or apprentice rates. An employer cannot pay an employee trainee rates just because they are young or new to the job.
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MYTH 8: Paying employees with goods such as food or drink is okay.
FACT: Payment-in-kind is unlawful. Employees must be paid wages for all work performed.
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MYTH 9: If a worker has an Australian Business Number (ABN) they are an independent contractor and minimum pay rates don’t apply.
FACT: Having an ABN does not automatically make a worker an independent contractor. Fair Work inspectors apply tests of fact and law to determine whether a worker’s correct classification is as an independent contractor or an employee. Whether an employer has labelled a worker as a contractor and required them to obtain an ABN may not be relevant.
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MYTH 10: Pay slips aren’t mandatory – employers only need to give employees pay slips if they ask for them.
FACT: Employers must give all employees a pay slip within one working day of pay-day. Employers can give employees paper or electronic pay slips, such as a link sent via email.
