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The Crimes Amendment (Penalty Unit) Bill 2017 (‘the Bill’) was passed by the federal government earlier this month. The Bill will increase the value of a penalty unit and is set to apply to contraventions that occur on or after 1 July 2017.
In practice, this means the maximum civil penalties against corporate entities and individuals for breaches of the Fair Work Act 2009, will increase as follows:
- Penalty Unit
Currently = $180 > From 1 July 2017 = $210
- Maximum Penalty for Corporate Entity
Currently = $54,000 > From 1 July 2017 = $63,000
- Maximum Penalty for Individual
Currently = $10,800 > From 1 July 2017 = $12,600
Under the Fair Work Act 2009, civil penalties may be imposed for breaches in relation to:
- compliance with the National Employment Standards;
- compliance with Modern Awards or Enterprise Agreements;
- workplace rights and other general protections;
- right of entry provisions; and
- protected and unprotected industrial action.
In the wake of recent record penalties being imposed by the Fair Work Commission, employers are advised to conduct regular audits of their business practices, including the practices of all entities operating under franchise or holding company models.
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