Expert Support for Underpayment Claims in Melbourne

How to Identify Underpayment Issues

Common Indicators of Underpayment

Underpayment issues can sometimes go unnoticed, but there are several key indicators that employees and employers can look out for to help identify potential problems.

• Discrepancies in payslips: Regularly review payslips for inconsistencies between hours worked and the wages received.

• Unpaid overtime: Employees should receive the correct overtime rates for work carried out beyond standard hours, as set out in the relevant award or agreement.

• Missing allowances: In certain roles and industries, additional payments for uniforms, travel or hazardous work are standard; the absence of these allowances may indicate underpayment.

• Incorrect penalty rates: Employees must be paid the correct penalty rates for work on weekends, public holidays, or night shifts, as specified in modern awards.

• Non-payment of superannuation: Employers are required to make superannuation contributions, and missing payments could indicate wider compliance issues.

Calculating Entitlements

Determining whether an employee has been underpaid requires a detailed understanding of their employment contract, the applicable award, or enterprise agreement. Below is a step-by-step guide to help assess potential underpayment:

• Identify the correct award or agreement: Determine which modern award applies to the role or industry. This will specify the required hourly rate, overtime rates, and allowances.

• Review the National Minimum Wage: Ensure the employee is receiving at least the minimum wage if no award or agreement applies.

• Check working hours: Compare the hours worked, including overtime, with those recorded on payslips.

• Account for entitlements: Consider leave accruals, superannuation, and other benefits outlined in the employee’s terms of employment.

• Use online calculators: Tools provided by the Fair Work Ombudsman can assist both employers and employees in accurately verifying minimum rates and entitlements.

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I established Close Consulting in 2007 as a small, boutique practice providing HR generalist advice to small business owners and individuals in Melbourne. In line with our growth over the past 13 years, we now provide specialised, professional and customer-focused advice across a wide variety of industries including aviation, higher education, retail, aged care and health.

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