[Australia] Gov't department overseeing workplace and employment conditions admits underpaying staff

In Australia, the government department responsible for overseeing federal workplace and employment conditions has paid around $200,000 to rectify a more than $60,000 underpayment of 99 staff, ABC News reports.

An internal query brought the matter to the attention of the federal Department of Employment and Workplace Relations. 

A Senate hearing on October 25 reportedly heard that the department's secretary Natalie James learned about the prospect of an underpayment on June 15. She subsequently spoke with Tony Burke - Employment and Workplace Relations Minister - on July 25. 

The affected staff only received the money owed to them this week.

The ABC says it tried a number of times, on October 25 and 26, to get comments from Mr Burke's office. On October 26, the minister’s office reportedly declined to answer questions and instead referred the ABC to the departmental secretary's October 25 comments. 

Ms James told the hearing that she had discussed the matter with Mr Burke in person. 

Liberal senator Michaelia Cash asked if Mr Burke asked to receive a formal briefing about the matter.

"The minister did not request a briefing," Ms James said. 

"We talked through the issues and we endeavoured to keep him informed."

When asked if Mr Burke had apologised to staff, Ms James initially said, "I'm not sure why he would, senator, it's my responsibility". After being pressed to answer the question she replied, "The answer is no".

Agriculture Minister Murray Watt appeared in the committee on behalf of Mr Burke. He stated that underpayments should not occur.

"Wage underpayment should not occur in any circumstance," he said.

“And where those wage underpayments are intentional, of course, we have legislation before the parliament to deal with that."

Senator Watt later added, "The other obvious thing to say is that where those underpayments are detected they should be remedied at the first available opportunity.”

Underpayment details

The underpayment reportedly occurred between July 7, 2022, and August 11, 2023, and affected 99 employees, 93 of whom are current staff.

The payments varied from about $9 to more than $4,000; the average was more than $630. 

The underpayment plus indexing cost almost $63,000, however, external legal and data costs totalled nearly $200,000. 

Officials attributed the underpayment to changes resulting from departmental changes that occurred after the 2022 election. 

On August 9, 2023, the department self-reported to the Fair Work Ombudsman.

In a statement, Senator Cash said, "This has been quite an extraordinary episode.

"If the department responsible, Employment and Workplace Relations, struggles to pay its staff correctly what hope do small businesses have?’’

It is not the only federal department found underpaying staff. In 2021, the Department of Finance confirmed it had underpaid 60 parliamentary employees over a four-year period. 

Around this time, the ABC reportedly confirmed it had underpaid current and former staff millions of dollars. 

Source: ABC News

(Quotes via original reporting)

In Australia, the government department responsible for overseeing federal workplace and employment conditions has paid around $200,000 to rectify a more than $60,000 underpayment of 99 staff, ABC News reports.

An internal query brought the matter to the attention of the federal Department of Employment and Workplace Relations. 

A Senate hearing on October 25 reportedly heard that the department's secretary Natalie James learned about the prospect of an underpayment on June 15. She subsequently spoke with Tony Burke - Employment and Workplace Relations Minister - on July 25. 

The affected staff only received the money owed to them this week.

The ABC says it tried a number of times, on October 25 and 26, to get comments from Mr Burke's office. On October 26, the minister’s office reportedly declined to answer questions and instead referred the ABC to the departmental secretary's October 25 comments. 

Ms James told the hearing that she had discussed the matter with Mr Burke in person. 

Liberal senator Michaelia Cash asked if Mr Burke asked to receive a formal briefing about the matter.

"The minister did not request a briefing," Ms James said. 

"We talked through the issues and we endeavoured to keep him informed."

When asked if Mr Burke had apologised to staff, Ms James initially said, "I'm not sure why he would, senator, it's my responsibility". After being pressed to answer the question she replied, "The answer is no".

Agriculture Minister Murray Watt appeared in the committee on behalf of Mr Burke. He stated that underpayments should not occur.

"Wage underpayment should not occur in any circumstance," he said.

“And where those wage underpayments are intentional, of course, we have legislation before the parliament to deal with that."

Senator Watt later added, "The other obvious thing to say is that where those underpayments are detected they should be remedied at the first available opportunity.”

Underpayment details

The underpayment reportedly occurred between July 7, 2022, and August 11, 2023, and affected 99 employees, 93 of whom are current staff.

The payments varied from about $9 to more than $4,000; the average was more than $630. 

The underpayment plus indexing cost almost $63,000, however, external legal and data costs totalled nearly $200,000. 

Officials attributed the underpayment to changes resulting from departmental changes that occurred after the 2022 election. 

On August 9, 2023, the department self-reported to the Fair Work Ombudsman.

In a statement, Senator Cash said, "This has been quite an extraordinary episode.

"If the department responsible, Employment and Workplace Relations, struggles to pay its staff correctly what hope do small businesses have?’’

It is not the only federal department found underpaying staff. In 2021, the Department of Finance confirmed it had underpaid 60 parliamentary employees over a four-year period. 

Around this time, the ABC reportedly confirmed it had underpaid current and former staff millions of dollars. 

Source: ABC News

(Quotes via original reporting)