Warning on redundancy pay

THE Fair Work Ombudsman has warned employers in Western Australia to be diligent in distributing workers' redundancy entitlements after investigations revealed many workers who have recently been laid-off were inadvertently short-changed.

Fair Work Ombudsman WA director Leigh Quealy said that, in the most recent case, a Kwinana-based employer was asked to reimburse more than $31,000 to five Filipino workers made redundant in March.

He said that after receiving no redundancy or termination entitlements when they were put off at short notice, the workers - who spoke little English - complained to his office and the matter was investigated.

Mr Quealy said the issue was a statewide problem across a variety of industries, and appealed to employers to ensure they fully understood their redundancy obligations to staff.

The warning comes after the Fair Work Ombudsman's office initiated legal proceedings in the Federal Magistrates Court against a Perth company for allegedly refusing to pay full entitlements to a marketing manager made redundant.

Plaza Cameras Pty Ltd and company director Ashley Heuchan are being prosecuted for allegedly failing to pay $4,792 (eight weeks' severance pay) to a marketing manager made redundant after more than four years' full-time work with the company.

Meanwhile, more than 700 food services workers throughout Australia will receive back pay totalling $470,000 following a national campaign.

The money - an average of $671 per employee - is being progressively reimbursed after they were underpaid.

One of the largest recoveries was in WA ($28,760) after 481 employers nationwide were randomly audited by inspectors, with 29 per cent found to be underpaying 714 staff almost $470,000.