Employers who are found by a Court or Tribunal to have breached their obligations under the Fair Work Act 2009 (Cth) (the Act) will face higher maximum penalties from 1 July 2017 when the monetary value of one ‘Penalty Unit’ increases to $210 from the current $180.
For the purposes of breaches of the Act, this means that a maximum penalty for a body corporate will increase to $63,000 (from $54,000), while the maximum penalty for an individual will increase to $12,600 (from $10,800) - this includes any individuals who are found to have been involved in a breach for the purposes of section 550 of the Act.
This is a significant increase to the maximum penalties. Employers should also note that from 1 July 2020, this figure will be automatically indexed against the Consumer Price Index (CPI) with further indexation every 3 years thereafter.
As always, if there is any issue within your business that might give rise to a claim, early intervention is the best protection. Get in touch with the Workplace and Employment team on 1300 565 846.