ARTICLE · 22 JUNE 2026

What Are Wage Entitlements And Underpayment Claims?

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Employees can bring underpayment claims under three different frameworks depending on the source of their entitlement: an employment contract, a modern award or an enterprise agreement, each with its own process, forum and remedies available.

AustraliaEmployment and HR

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Summary

Employees can bring underpayment claims under three different frameworks depending on the source of their entitlement: an employment contract, a modern award or an enterprise agreement, each with its own process, forum and remedies available.
Contractual underpayment claims must be brought within six years of the breach, with claims under $20,000 heard in the small claims court of the Federal Circuit Court and larger or more complex claims filed in the Federal Circuit Court or Federal Court of Australia.
Award and enterprise agreement claims typically go through a dispute resolution process culminating in conciliation before the Fair Work Commission, with appeals heard in the Federal Court, and can include claims for psychological injury and lost employment opportunities in addition to unpaid amounts.

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