Senator Eric Abetz

The Fair Work Ombudsman’s release today of a report into audits conducted in the retail sector over the last year shows that there is still a huge level of confusion with Labor's so-called 'modern awards' two years after implementation said Shadow Minister for Employment and Workplace Relations Senator Eric Abetz.

The Fair Work Ombudsman Nicholas Wilson said today that “many employers underpay as the result of a lack of information or they make mistakes interpreting the information they have”.

"Clearly these are innocent mistakes resulting from mass confusion," Senator Abetz said.

“It’s vital that employers and workers understand their rights and responsibilities and this is clearly an area that needs to be reviewed.”

“When you’ve got big businesses with armies of human resources lawyers to help them getting it wrong, how can anyone reasonably expect small business and individual workers to understand the details of their obligations and entitlements?”

"Ms Gillard's brave new world of rushed and forced modern awards has left an unprecedented number of workers worse off due to the misconfusion Labor unnecessarily created."

"Labor's ongoing mantra that the system is working well is cold comfort to the small businesses innocently getting it wrong and having to find backpay in a very tough retail climate."

"Similarly, workers who have been underpaid and who have now received lump sums in compensation will often have their Centrelink and other payments readjusted leading to further confusion."

"Labor needs to swallow its pride and acknowledge the difficulties rather than try to spin their way out of the problem."

"When 25% of retailers are confused and don't know what to pay their workers there is a systemic problem."

"Whilst the report does not indicate overpayments it stands to reason the wholesale confusion has led to some retailers also unwittingly overpaying staff causing unnecessary stress to their cash flow."

"At each Senate Estimates, I have raised this very issue and Labor have arrogantly rejected the Coalition's advocacy. Now that Labor have this confirmed by their very own agency, the Fair Work Ombudsman, the time for denial is over. Labor must deal with these systemic issues as a matter of urgency," Senator Abetz concluded.