What is payroll remediation and how does it work?

Short answer. 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.

The usual stages

1. Risk review. Check payroll settings, classifications and processes against the award or enterprise agreement.
2. Recalculation. Recalculate entitlements for a sample, then for every affected employee and period if needed.
3. Fix the cause. Correct classifications, payroll rules and controls so the problem stops.
4. Repay employees. Calculate back pay, superannuation and any interest per employee, and communicate clearly.
5. Regulators. Decide with your lawyer whether and how to engage with the Fair Work Ombudsman.

Why independence helps

An independent recalculation, with the method and assumptions written down, is easier to defend to employees, unions, auditors and the regulator than an internal estimate.

General information only. It does not take account of your circumstances and is not legal, tax or financial advice.