Construction Fair Work
Case Study
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822 audits
264
178
$339,433
Case overview
A Fair Work Ombudsman investigation into Australia’s construction industry revealed widespread underpayment and non-compliance among businesses employing apprentices. Over a two-year campaign ending in June 2016, the agency audited 822 businesses and 2,266 apprentices, finding that 264 businesses had failed to pay apprentices correctly.
The investigation also uncovered record-keeping and payslip violations across 178 businesses, highlighting gaps in employers’ understanding of their workplace obligations. As a result, the Fair Work Ombudsman recovered $339,433 in unpaid wages for 323 workers and issued formal cautions, compliance notices and infringement notices to businesses.
The findings highlighted the importance of accurate wage calculations, proper record-keeping and understanding employment entitlements, particularly when employing apprentices and young workers.
Case facts
What they should have done
The company should have referred to the Fair Work Ombudsman’s Pay and Conditions Tool (PACT) to determine pay rates and check entitlements. As well as properly document work hours, pay rates, etc.
How Happy HR could have helped
Award Interpretation
Reliable record keeping
HR performance processes
Happy HR ROICountless hours saved in Fair Work and reviewing documents
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Frequently asked questions
What happened in this Construction Fair Work case study?
The Fair Work Ombudsman conducted a National Apprenticeship Campaign over two years, ending in June 2016, to investigate whether Australian businesses were meeting their obligations to apprentices. Across 822 business audits, the agency found that 264 businesses had failed to pay apprentices correctly, highlighting widespread issues with wage compliance.
How many businesses were found to be non-compliant?
Of the 822 businesses audited, 264 businesses (32%) had underpaid their apprentices. A further 178 businesses (22%) failed to meet record-keeping and payslip requirements, highlighting the importance of accurate payroll and employment documentation.
How much was recovered for underpaid apprentices?
The campaign resulted in the Fair Work Ombudsman recovering $339,433 in unpaid wages for 323 workers. The agency also issued 54 formal cautions, seven compliance notices and five infringement notices to businesses.
What should construction businesses do to avoid Fair Work breaches?
Construction businesses should ensure apprentices receive the correct wages and entitlements, maintain accurate employee records and issue compliant payslips. Employers should also understand the relevant award requirements and ensure apprentices are paid for all hours worked.
How could Happy HR help construction businesses manage HR compliance?
Happy HR can provide businesses with access to HR support and guidance to help them better understand their workplace obligations, establish appropriate HR processes and identify potential compliance risks. This can help employers make more informed decisions and reduce the risk of costly HR mistakes.
See how Happy HR helps construction businesses stay compliant and reduce HR risks
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