Small business owners are increasingly confused by Federal and State industrial relations laws, causing them to unknowingly underpay staff according to Business SA chief executive Peter Vaughan. Mr Vaughan said employers were often confused by ever-evolving industrial relations laws.

Yesterday, the Fair Work Ombudsman’s investigation revealed that 14 Adelaide workers were back-paid $120,000. The largest recovery was $37,500 for four underpaid housekeepers working at a city motel. After Fair Work inspectors contacted the motel to explain its obligations, the employer voluntarily rectified the matter without the need for further action.

Fair Work Ombudsman executive director Michael Campbell said because all the employers had co-operated with inspectors and voluntarily repaid the money owed there would be no further action against the companies involved.

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