A concentration of underpaid workers has been uncovered in western Sydney, with almost two- thirds of businesses audited found to be seriously short-changing workers or failing to keep proper pay records.

The Fair Work Ombudsman investigation found that 64 per cent of almost 200 businesses audited were breaching workplace laws in suburbs including Cabramatta, Guildford, Mount Druitt, Fairfield and Merrylands.

An investigation by the Fair Work Ombudsman has found almost tow thirds of nearly 200 businesses were breaching workplace laws. Vision courtesy: Seven News.

Fair Work Ombudsman Natalie James said businesses that were underpaying workers and not issuing them with correct pay records were on notice that future breaches could result in serious enforcement action.

She said her agency would not hesitate to take action where deliberate or repeated breaches of the law were identified.

“Employers who fail to put in place processes to ensure compliance expose themselves to enforcement action, including litigation in the most serious cases,” Ms James said.

Fair Work inspectors issued 26 formal cautions, 20 infringement notices (on-the-spot fines) and 11 compliance notices to non-compliant businesses during the course of the campaign.

One restaurant was found to be paying casual employees under an old award, resulting in a total underpayment of $10,444 to three employees. Fair Work inspectors issued the employer with a compliance notice, and the employees were fully back-paid in accordance with the notice.

Fair Work inspectors visited sites focusing on Harris Park and Parramatta in response to intelligence received by the agency indicating potential non-compliance among restaurants in the area.

A large hair salon back paid three apprentices a total of $3,625 after failing to update their salaries in line with the most recent award change.

The audits led to a total of $369,324 in unpaid wages and entitlements being recovered for 199 workers.

The audit found 36 per cent of businesses were not complying with record-keeping and payslip requirements and 42 per cent were not paying employees correctly.

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Fair Work inspectors visited sites focusing on Harris Park and Parramatta in response to intelligence received by the agency indicating potential non-compliance among restaurants in the area.

The suburbs are also home to a higher than average proportion of migrants, with both Harris Park (85 per cent) and Parramatta (74 per cent) at more than twice the national average of 30.2 per cent.

A hair salon back-paid three apprentices $3625 after failing to take account of the most recent award change.

Only two of 23 businesses visited in these suburbs were found to be fully compliant with Fair Work Laws.

Ms James said the non-compliance rates uncovered by the campaign were highly concerning and could not be tolerated.

“Where possible, we seek to educate employers and employees about their workplace rights and obligations and equip them with the tools and information they need to ensure they are complying with the law,” she said.

“This area has a large proportion of people from culturally and linguistically diverse backgrounds, who can find it more challenging to navigate that information or even know where to find it in the first place.

“When combined with a lack of familiarity with workplace laws, language barriers can present significant difficulties to employers seeking to understand and comply with their obligations."

Fair Work Ombudsman Natalie James said the non-compliance rates uncovered by the campaign were highly concerning and could not be tolerated. Andrew Meares

Ms James said employers dealt with in western Sydney were co-operative and willing to engage with her inspectors and "all contraventions were willingly rectified".

She said new arrivals to Australia might have a limited awareness of Australian workplace laws.

Her office was making more resources available in multiple languages, including its Anonymous Report function and the Record My Hours app.

“Our website can also be viewed in 40 languages other than English with a simple click of the mouse with our new website translator," she said.

“With the wealth of free information and resources available to help businesses understand their obligations, there are no excuses for breaching workplace laws."

Workplace Minister Craig Laundy said he was "deeply concerned" about the reports and called on all businesses to do the right thing by their workers.

“There can be no excuses for any underpayment or exploitation of workers,” he said.

“I will now be working with the FWO to convene education sessions in western Sydney to

ensure all businesses fully understand their obligations and know where to go to access

the right information and assistance. I will also write to the local federal MP’s to enlist their support for the information sessions in their electorate.”