Yahoo Finance $126,000 fines in store for ‘dodgy’ JobKeeper bosses
The $130 billion JobKeeper program was touted as a way for businesses and employees to stay connected during the coronavirus crisis, and emerge on the other side ready to return to normal operations.
But weeks after its announcement, employees across the country are complaining of dodgy bosses asking them to split the payments, pay an administration fee on the $1,500 fortnightly payments and take illegal pay cuts.
Also read: JobKeeper: What your employer can’t ask you to do with it
Also read: Why your JobKeeper payment may be less than $1,500
Also read: JobKeeper passed: Am I eligible for the $1,500 wage subsidy?
Employers caught knowingly doing the wrong thing face fines of up to $126,000, while corporations can be forced to fork out $630,000 under the Fair Work Act. Employers who make mistakes will face lower penalties of $12,600.
Additionally, those found guilty of attempted fraud are up for 10 years in prison.
“These measures will not affect taxpayers that do the right thing, but will allow for swift and effective action
to be taken against those that seek to abuse the scheme and obtain more than their entitlements,” a JobKeeper fact sheet stated.
“Entities that seek to abuse the scheme, especially those that seek to engage in fraud, will face penalties commensurate with the seriousness of their conduct."
Calls for JobKeeper support
Federal member for Mayo Rebekha Sharkie has led calls to introduce a JobKeeper employee hotline, after she was contacted by a worker who had been asked to give her employer $600 of the $1,500 payment.
"This is unacceptable behaviour. During this time of crisis when the power imbalance between employee and employer is more marked than ever, vulnerable employees need a dedicated hotline to seek advice about their rights and their responsibilities,” Sharkie said.
An employee let go 3 weeks ago was contacted by former employer today offering #JobKeeper but only if she gives them $600 of her payment. She refused, employer no longer willing to file paperwork. We need a hotline for employees pressured to commit such fraud. #auspol
— Rebekha Sharkie MP 💧 (@MakeMayoMatter) April 15, 2020
"People can contact the Fair Work Ombudsman but there is no dedicated phone line for these unusual employment circumstances,” she said.
"The government says this is an economic crisis as well as a health crisis, and it certainly is, so Australians need a dedicated hotline that deals solely with the intricacies of the JobKeeper scheme.”
In a statement to Yahoo Finance, an ATO spokesperson said Australians can contact the ATO on a confidential tip-off hotline at 1800 060 062. Those who suspect illegal behaviour can also fill out a tip-off form at ato.gov.au/tipoffform.
They said there is also a dedicated team examining all tip-offs and will take further action as required.
“We know that the overwhelming majority of Australian employers are honest and want to see this assistance reach those who need it most. The ATO will work with employers to avoid and overcome genuine mistakes,” the spokesperson said.
“There may be a very small number of people who seek to fraudulently access money they’re not entitled to. These people will be caught and will be subject to significant penalties. The ATO’s robust and efficient compliance measures will quickly identify those who try to rort the system.”
The Victorian Trades Hall Council has also launched its own platform for workers to dob in dodgy bosses.
The JobScammer platform promises to “hold dodgy bosses accountable”.
“The JobKeeper scheme is NOT a kickback for bosses - it's financial support to keep workers employed and able to put food on the table. Shine a light on employers who are doing the wrong thing,” the Trades Hall said on Twitter.
The JobKeeper wage subsidy is starting to roll out and already we're hearing far too many stories of bosses trying to abuse the scheme and rip off workers. Well, we're not going to let them get away with it. Dob in a dodgy boss at https://t.co/cxN18vTH1G #JobKeeper #ausunions pic.twitter.com/lcUx4bhrJ3
— Vic Trades Hall (@VicUnions) April 22, 2020
Calls to the Fair Work Ombudsman have already doubled since the introduction of the JobKeeper scheme, as unions call on employees to closely guard their entitlements. The Fair Work Ombudsman is now receiving around 1,000 calls a day, The New Daily reported.
Social media enquiries have shot up around 80 per cent and visits to the website have also nearly doubled.
However, bosses have also complained of workers asking for the full $1,500 entitlements while refusing to work.
An Adelaide business has been at the centre of a dispute between retail worker Sorina Cristea and her boss. Cristea claimed her boss upped her hours to “earn” the subsidy. Cristea had concerns about the increased hours as she feared putting her ill father at risk.
However, her employer said she had rostered the worker on the same shifts as before, and was entitled to ask the employee to work more hours.
“I would be concerned about any behaviour by employers that was coercive and be very keen for that to be relayed to Fair Work and the ombudsman and others to ensure that we can take action on those cases where they are presented,’’ Prime Minister Scott Morrison said last week.
“If you’re getting paid $750, then the employer obviously asks you to do the $750 at the rate of pay of work. That’s what the act provides for. That is not an unreasonable request that someone would work the hours that they’re being paid for.”
However, his office later said this isn’t the goal of the scheme and workers can’t be forced to do more work.
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