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Underpayment and Award Compliance

From 1 January 2025, intentional underpayment of wages or entitlements can be a criminal offence. Every organisation should be reviewing, reconciling and recording to limit risk of prosecution.

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The Fair Work Commission has the power to investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If convicted of a criminal  offence, a court can now impose fines, prison time or both, depending on the severity of the offence.

Underpayment and award compliance issues

ABLA has substantial experience assessing and defending allegations by employees and trade unions of the underpayment of employment entitlements. Our experience allows us to respond in a cost effective manner to underpayment claims.

Our services in this area include:

  • Determining the application of awards and agreements to particular businesses/workplaces.
  • Undertaking workplace audits to determine whether time and wage systems comply with legal requirements.
  • Advising on allegations of underpayment, including determining assessments of potential liability towards employees.
  • Appearing in industrial tribunals in response to allegations of underpayment of entitlements.
  • Assisting employers to defend proceedings for the recovery of alleged underpayments.

ABLA acts in the Fair Work Commission's award review proceedings, both pursuing and defending changes to over 100+ modern awards regarding simplification of award terms, accommodating work and care, job security provisions and recently, responding to claims to introduce delegates' rights and right to disconnect terms in modern awards.  

Ensuring your organisation is using the relevant Modern Award for your employees is imperative, along with understanding if any other industrial instrument is applicable. 

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