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Topic · 3 questions

Payroll and wage compliance

Underpayments, back pay, remediation and what the wage theft laws mean for employers.

Is underpaying staff a crime in Australia?

It can be. Since 1 January 2025, an employer who intentionally underpays wages, superannuation or other entitlements can commit a criminal offence under the Fair Work Act. Honest mistakes that are corrected are treated differently. Victoria also has its own wage theft laws. Get legal advice and an independent recalculation early.

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What is payroll remediation and how does it work?

Payroll remediation is the process of finding, calculating and repaying wages and entitlements that employees were underpaid, and fixing the cause. It usually runs in stages - risk review, recalculation, fixing the payroll error, repaying employees, and dealing with regulators - with an employment lawyer advising throughout.

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