The HR manager of a dumpling business that was recently fined $4 million for a payroll scam has received a personal penalty of $100,000 for her role in perpetuating the scheme.
The HR manager argued that she was not responsible for the scam, rather that she was simply one of the staff that the business used to conduct the underpayments.
At the hearing a former payroll officer said the HR manager told him to make “both accurate and inaccurate records” of hours worked and amounts paid to workers and to record that full-time employees worked 76 hours a fortnight at a set salary, regardless of the facts.
The HR manager apparently also told the payroll officer to make it look as though casual employees worked “less than the hours they actually worked at the hourly rates set out in the master payroll” and to ensure pay slips did not include cash payments, according to his testimony.
In handing down the personal penalty the judge noted that the HR manager “did not simply act as a conduit” to the underpayment scam, but that in reality she had been “at least knowingly concerned” and had instructed and trained a colleague in the payroll scam.
The penalty handed down was only 40% of the total that could have been applied, due to the lack of ‘benefit’ to the HR manager personally of the underpayments.
Here To Help
HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation by emailing employment@acapma.com.au to get in contact with one of ACAPMA Workplace Relations Professionals, its free for members.
ACAPMA membership is affordable at only $860 per year for a single site and valuable with sites gaining HR advice support and representation as well as a raft of other benefits and discounts. Click here to learn more about ACAPMA membership.
Elisha Radwanowski BCom(HRM&IR)
ACAPMA
