A record number of alleged employment law breaches were reported in Australia over the past financial year, according to the Fair Work Commission. BlackBay Lawyers says companies big and small are being hit with significant costs to deal with the claims, including what the firm describes as the "hidden costs" associated with long-term reputational damage.

Council of the City of Sydney

A recent surge in alleged employment law breaches has been observed in Australia, with the Fair Work Commission documenting a record number of complaints in the last financial year. BlackBay Lawyers highlights the implications for companies of varying sizes, emphasizing significant expenditures required to manage these claims. Apart from immediate legal and financial penalties, companies face "hidden costs" such as long-term reputational damage.

High-profile companies, including prominent Australian supermarket chains and airlines, have dealt with such issues, underscoring the challenges of maintaining their public image. Victoria Jane Etabski of BlackBay Lawyers advises that larger businesses face more significant repercussions when managing staffing issues inadequately. Over 40,000 workplace breach cases, including 5,000 allegations surrounding discriminatory dismissals, were addressed last year. Additionally, the data reflects a 200% increase in sexual harassment claims, a 58% rise in anti-bullying orders, and growth in psychological injury and underpayment complaints.

Employees have become more knowledgeable about their rights, leading to heightened expectations for lawful employment practices. Consequently, businesses encounter various penalties, including fines from regulators, court-awarded damages, and legal fees. Beyond these, hidden costs manifest through factors such as consumer backlash, decreased shareholder value, and internal efforts to mitigate the impact of breaches. Notably, Woolworths faced criticism for failing to provide appropriate leave entitlements to 1,200 staff members, while Qantas was found guilty of unlawful dismissal and outsourcing practices. These actions lead to millions in costs, with a related decline in Qantas’s brand value by $380 million reported in the past year.

Businesses are encouraged to focus on compliance, invest in training and regular audits, and promote a positive workplace environment to prevent issues. Developing effective crisis management strategies can further safeguard reputational integrity. Victoria Jane underscores the importance of proactive, informed approaches to minimize risks and optimize business outcomes.



Revealed: The hidden costs of employment law breaches

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