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Small businesses in Australia can suffer from significant reputational damage, loss of trust, and regulatory action if they fail to pay their employees correctly, according to Employsure, a workplace relations specialist. The company highlights the complexity of Australia’s employment and industrial relations framework, which includes over 120 Modern Awards across different industries and the specific terms in each. Underpayments, even unintentional ones, can result from administrative oversight and could lead to substantial losses over time.

Ryan Price, Content Manager from Employsure, stressed that a slight difference of one cent per hour across many employees could become a substantial underpayment. “If a banking giant can struggle to get it right, then it’s completely unbelievable that small businesses are expected to work within the same system and be without fault,” he said.

The Fair Work Ombudsman is also looking for underpayments, with investigations and regulatory action becoming more common in recent years. To protect themselves from underpayment claims, Employsure recommends that businesses have a clear position and role descriptions, correctly classify employees, regularly review pay rates against relevant awards, and seek professional advice.

Employsure can help businesses pay their employees correctly by reviewing their business and confirming their award coverage to ensure the correct classifications and entitlements are applied. The company’s expert team can also advise navigating the complex system.

Employsure is committed to helping small and medium-sized businesses build better businesses. By empowering employers and business owners with the knowledge they need to manage and pay their employees correctly, the company aims to prevent reputational damage, loss of trust, and regulatory action.

In a recent incident, the Commonwealth Bank of Australia admitted to underpaying its staff by over $16 million. This highlights the importance of ensuring businesses pay their employees correctly, as even large corporations can make mistakes.