Businesses warned: closures no excuse

SMEs are warned to be aware that staff entitlements must be upheld even in times of financial crisis.

The Federal Workplace Ombudsman recently awarded $65,000 to eleven workers at a Brisbane manufacturing company who lost their jobs following the business closure last year.

Executive Director Michael Campbell said that initial efforts to recover the money proved difficult, but the former employees have now been paid in full, with amounts ranging from $4500 to $9600.

Mr Campbell says the employer’s last-minute decision to pay-up probably narrowly saved it from court action.
“If we had gone down that path, the company would have faced penalties of up to $33,000 for each breach,” he said. “In the current economic climate, it is timely to remind employers that closing a business does not mean workplace laws regarding redundancies can be ignored.”

For more information, www.wo.gov.au

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