Horse racing workers underpaid by trainers

Horse trainers on Australia's east coast have been underpaying stable hands and strappers by paying flat rates below the award rate, the workplace ombudsman has found.

The audit by the Fair Work Ombudsman found only 31 per cent of employers scrutinised in Victoria's horse racing industry were compliant with federal workplace laws.

Compliance rates were higher in NSW, on 86 per cent, and 76 per cent in Queensland, the ombudsman's audit found.

The ombudsman said a total of 15 horse trainers were found to have underpaid 61 employees almost $40,000.

The underpayments were mostly due to paying flat rates below the Award rate or not paying casual employees the minimum daily engagement of three hours.

The books of 86 horse trainers in metro and regional NSW, Victoria and Queensland were checked in late 2013 in the audit after almost 100 complaints from employees.

The ombudsman said while there "are issues of concern in some areas of the industry" it was "encouraged by the positive response from employers".