Pharmacy Daily | Avoid falling foul of wage laws: RSM

PHARMACY owners and managers are being encouraged by business consultancy and accountancy firm, RSM, to pay close attention to their obligations to employees in the wake of recent pay scandals, including Woolworths' $300 million underpayment.

RSM Pharmacy Services Manager, Daniel Morrow, told Pharmacy Daily that businesses could reduce their risk of non-compliance by implementing award interpretation software, which updates automatically with every Fair Work change.

"Given the recent high-profile cases of the underpayment of staff, it is imperative that pharmacy owners give serious consideration to their obligations to employees," he said.

"Due to the complexities surrounding the interpretation of modern awards, we are suggesting our clients utilise cloud-based workforce management software packages.

"These packages are generally low-cost and if used correctly, can provide comfort to know that you are meeting pharmacy industry standards surrounding pay-rates and rostering."

Morrow said the introduction of the Australian Taxation Office's (ATO's) Single Touch Payroll (STP) system had placed additional requirements on pharmacy owners and managers to stay on top of their employees' wages.

"This enforces employers to report on all payroll data in real-time," he said.

"So the pressure is now on pharmacy owners and managers to keep up to date on the processing of wages and payments.

"Since the adoption of STP, we have seen the ATO put additional pressure on owners to meet employee superannuation obligations so this should be front-of-mind for all owners."

Morrow urged owners and managers to seek support from their legal or accounting advisor if they have any concerns.

"In the event that underpayments are identified, it is imperative to take action immediately to rectify the situation -- the risk associated with leaving this issue unresolved could not be greater for owners," he said.