Legal and Financial Repercussions
Organisations may face legal consequences, including fines and damages, if they fail to investigate complaints, especially if the complaints are related to harassment or discrimination. Addressing complaints promptly can prevent issues from escalating into more significant problems, including legal disputes or widespread employee dissatisfaction.
Breaches may result in:
Financial Penalties: Businesses can face significant fines for breaches of workplace laws. The Fair Work Ombudsman can issue on-the-spot fines and take legal action, which can result in higher penalties.
Compensation Orders: Courts can order businesses to pay compensation to employees who have suffered loss due to the business's non-compliance.
Enforceable Undertakings: A business may be required to enter into an enforceable undertaking, which is a legally binding agreement with the Fair Work Ombudsman to rectify the breach and prevent future occurrences.
Legal Costs: If a matter goes to court, the business may be liable for significant legal costs.
Revocation of Licenses or Permits: In some cases, non-compliance can lead to the revocation of essential licenses or permits required to operate the business.
Injunctions: Courts can issue injunctions to prevent ongoing breaches or to require specific actions to be taken by the business.
Back-Payment Orders: Businesses may be ordered to back-pay employees for underpayments, which can include interest and additional penalties.
Individual Liability: Company directors and other individuals involved in the management of the business can be held personally liable for breaches of workplace laws.