ARTICLE · 19 MAY 2022

So you have underpaid an employee.... now what?

People + Culture Strategies

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FWO continues to focus on taking action against large corporations for non-compliance with minimum standards & underpayments.

AustraliaEmployment and HR

Kirryn West James

Matthew McKeon

Underpayment or "wage theft" has gained significant media attention recently with a string of high-profile companies (including Woolworths, Coles, Star Entertainment Group, the Commonwealth Bank of Australia and Australia Post) being faced with underpayment issues. The Fair Work Ombudsman (the "FWO") in its strategic priorities for the 2021-2022 financial year outlined its continued focus in taking action against large corporate employers for non-compliance with minimum standards and underpayments.

But issues of underpayment are not limited to large companies. The FWO frequently commences investigations, issues compliance notices and brings claims against small-medium employers for underpaying employees. As an employer, what should you do if you discover an underpayment issue?

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