Fair Work Australia announces increases in federal minimum wages
Small business owners will need to adjust their employee wages to suit the recent increase of the federal minimum wage of $19.40 per week.
According to Fair Work Australia, the increase will kick in from the first full pay period on or after 1 July 2011.
Unfortunately, the increase may be higher than some small business owners were expecting this year, which may hit certain sectors harder than others, pointed out Ryan.
“A lot of small businesses, particularly in the retail sector, are already struggling with the lack of consumers spending and the high Australian dollar and cheaper imports and online shopping,” she said.
This is the second year of the transitioning of old to modern awards, said Ryan, who warned some employers will need to pay varying transition rates in addition to their employees’ increased wages. She recommended small business owners to seek the help of either an outsource provider or the Fair Work Ombudsman website or helpline to confirm details.
“If they don’t handle it properly, the bottom line is they leave themselves open to complaints by employees and an investigation by the Fair Work Ombudsman,” warned Ryan.
“If that investigation reveals underpayment, they can be subject to prosecution and make good on any of underpayment of wages. If that doesn’t come to light for some time they could face a huge underpayment bill all at one go.”