Wage theft is rife in the Australian Nanny/Educator sector, and it is getting worse post -pandemic.
Wage theft is a significant issue in Australia, and occurs when employers underpay their workers, fail to pay them their entitlements, or engage in other forms of exploitation. The employer can be an agency, or a family. Wage theft can take many forms, including:
1. Underpayment of wages: This occurs when an employer pays their workers less than the minimum wage or fails to pay them for all the hours they have worked.
Nanny/Educators fall within two awards within Australia. Both include a minimum starting hourly rate and penalty rates such as overtime after an 8-hour shift. It also includes penalty rates such as for weekends and public holidays. Both awards also cover specifics such as base hourly rates, minimum shift payments, first aid allowance, split shift allowances, overtime either per day or after 38 hours, afternoon, early morning, night and weekend and public holiday rates.
2. Misclassification of workers: This occurs when an employer misclassifies their workers as independent contractors rather than employees, to avoid paying entitlements. A true contractor can set their own hours and send in a replacement of their choosing as well as list what they will and will not do in their job description.
This is most typically exploited within the nanny and in- home childcare industry and is also known as "sham contracting. '' Nanny/Educators always work to a job description arranged by both client, agency and in some cases, conditions set by government legislation such as In home childcare legislation. Further they cannot choose their own hours or replace themselves with a worker such as their own sister, who is not screened by the client, agency and in some cases the In-home childcare support Agency.
3. Non-payment of entitlements: This occurs when an employer fails to pay their workers their entitlements, such as superannuation, annual leave, or sick leave or penalty rates when they work outside of their contracted hours e.g. weekends, evenings, also known as overtime.
Again, this happens within the Nanny/Educator Sector when employees are mis classified as “independent contractors.” The female work force that takes time off to have their own children are already significantly disadvantaged in Australia. The nanny /educator sector is a heavily dominated female workforce. There are therefore huge scores of the caring profession missing out their basic entitlement necessary to provide for their old age. They will go into old age impoverished, and without superannuation entitlements that they would have otherwise received if they were not taken advantage of.
4. Unlawful deductions: This occurs when an employer makes deductions from a worker's pay that are not allowed under the law, such as deductions for uniforms or tools or to join an Agency. A nanny should never have to pay to join an employment or recruitment Agency.
The Australian government has taken steps to address wage theft, including introducing legislation that increases penalties for employers who engage in this practice. Employers who engage in wage theft can face fines of up to $630,000 per contravention, while individuals who are found to be involved in wage theft can face fines of up to $126,000 per contravention.
If you believe that you have been the victim of wage theft, it's important to seek legal advice. There are a number of organizations that can provide assistance to workers who have been underpaid or exploited, including the Fair Work Ombudsman and community legal centres. Also if you thinking of engaging a Nanny/Educator or becoming a Nanny/ educator seek legal and financial advice.
Our industry is rich with professional workers who are committed, skilled, qualified, and who are passionate childcare workers and to those professionals we are grateful. They deserve better, and our country and regulatory bodies need to do a better job at recognising a profession that does so much to support our children's care and education, and families being able to attend the workforce.
Placement Solutions has proudly served the Nanny/Educator sector for 35 years and wants all in the sector whether a client or Nanny/ Educator to be aware of their obligations and rights. We can help you as a Nanny/Educator to find a great family who accepts their legal obligations. As a client we will provide an educated professional career nanny/educator who is aware of both their responsibilities and rights. For those going it alone, we offer a payroll service known as Just Family Payroll where we can set up your fortnightly wage payments and run them for you.
Please email here for further information
info@placementsolutions.com.au