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Employers face higher penalties from 1 July 2017

Release Date

16 May 2017

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. Feel free to contact:

Luis Izzo

Margaret Chan


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