Breach of labour law highlights value of payroll software

One of the biggest advantages of using recruitment software that offers payroll and billing efficiency modules is that this technology can help your organisation achieve ongoing compliance with labour laws. 

Because this payroll software can achieve better workflow automation and improved efficiency, it is ideal for eliminating the risk of human error while also ensuring better record keeping and reporting. 

The value of such functionality was recently highlighted by the case of a Melbourne recruitment and labour hire company that is facing civil proceedings after allegedly underpaying workers and falsifying employment records.

An investigation by the Fair Work Ombudsman revealed the company had unlawfully deducted more than $130,000 from employee wages between December 2011 and May 2013.

These deductions were attributed to 'administration' and 'meal fees'. However, the Fair Work Ombudsman is arguing that charging such expenses to employees is unlawful, as the fees "were not principally for the benefit of the employees" and therefore conflict with workplace laws.

The company has also been accused of trying to mislead Fair Work Ombudsman inspectors by providing them with false records.

If found guilty of the allegations, the recruitment company itself could be liable for fines of between $33,000 and $51,000 per breach, according to the Fair Work Ombudsman. The individuals involved could also face significant penalties.

This incident could be cause for alarm for any recruitment agency not utilising payroll and billing software to ensure proper workplace law compliance.

Payroll software simplifies the process of compensating workers and can ensure that your candidates are paid on time and correctly, significantly mitigating the risk of underpayment like that uncovered by the Fair Work Ombudsman. 

Furthermore, because payroll and billing software can keep an automatic, detailed and accurate record of candidate payments, it can also ensure that any investigations such as the aforementioned are responded to in a timely, accurate and comprehensive fashion.