Building and construction employers are being put on notice by the Fair Work Ombudsman in a joint audit with the QBCC and ABCC with a particular focus on underpayments.
In some cases, the Fair Work Ombudsman can fine an employer up to $666,000 for underpaying its employees.
A recent case commenced by the Fair Work Ombudsman against a Victorian building company has indicated that employers in the building and construction industry may not be in compliance with the Building and Construction Award by not properly calculating the appropriate allowances and appropriate rates of pay.
A report undertaken by the Australian Building and Construction Commission in 2018 has indicated that while over 70% of building and construction employers are compliant with their basic payment obligations, a vast majority of employers are misinterpreting Award provisions relating to allowances.
In some cases, small errors in the misuse of allowances can lead to significant underpayments when extrapolated over a large workforce over a number of years.
Building and Construction allowances include but are not limited to: