Dealing with alleged underpayments of wages

It’s not easy working out what you need to pay your employees. For most employers this involves being across the National Employment Standards, identifying which Modern Award applies to each employee, working out what level each employee is working at, reviewing the employee’s individual contract, and then finally paying them the correct remuneration and allowances each pay cycle.

It’s no wonder then that the ‘underpayment’ of wages is rampant in Australia. Probably more due to the complexity of the laws, rather than any deliberate intent on the part of most employers.

There are two likely reasons you’re reading this: The first is that you have received a claim for underpaid wages, and the other is that you’re keen to avoid this fate. In either case, we can help.

Call us on 1300 88 23 86 for a no-obligation and confidential chat.

We are regularly guiding employers through the process of dealing with underpayment claims, including representing you against the Fair Work Ombudsman, Fair Work Commission and the Federal Court.

What are the more common risk areas?

Particular areas that are high risk for underpayment include:

• Not applying the correct penalty rates, particularly on a public holiday or weekend
• Underpaying leave entitlements
• Not being aware of pay increases as prescribed by legislation and awards
• Not adjusting pay when an employee has taken on more duties and responsibilities and goes up a grade in their award
• Not adjusting for when an employee has completed an additional qualification
• When an employee has made the transition from a junior worker to a standard worker
• Not calculating and paying allowances, loadings and overtime correctly

If you identify an underpayment, it is very important that you work out how long it has been going on for, and whether it potentially impacts other employees.

Call us on 1300 88 23 86 for a no-obligation and confidential chat.