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Expert Support for Underpayment Claims in Melbourne
Trusted support in Melbourne to resolve underpayments and recover unpaid wages in line with workplace laws.
Are you struggling with underpayment at work?
Missing penalty rates, unpaid wages, or errors in overtime pay can lead to financial stress and frustration.
In 2022–23, the Fair Work Ombudsman recovered over $509 million for underpaid workers, underscoring the growing prevalence of wage issues in Australia. Whether due to payroll errors or deliberate wage theft, underpayment undermines fairness in the workplace.
At Close Consulting, we offer expert guidance, mediation, and compliance support to help both employees and employers resolve underpayment disputes effectively. Take the first step towards fairness—reclaim your rights or protect your business today.

What Our Clients Are Saying

How Are Payment Rates Determined?
Fair Work Act 2009
The Fair Work Act 2009 is the foundation of employment law in Australia. It sets out the rights and responsibilities of employers and employees, providing a legal framework for minimum entitlements, workplace protections, and dispute resolution.
Under this Act, employers are required to comply with the national minimum wage, modern awards, and other employment conditions. Failure to meet these standards—such as through the underpayment of wages—can result in serious consequences, including fines and penalties imposed by the Fair Work Ombudsman.
National Employment Standards (NES)
The National Employment Standards (NES) set out the minimum entitlements for employees in Australia. These include minimum wages, which ensure employees receive at least the prescribed pay rates for their role, as outlined in relevant awards or agreements. The NES also regulate working hours, capping the standard workweek at 38 hours, with allowances for reasonable additional hours. In addition, employees are entitled to various forms of leave, including annual leave, personal leave, parental leave, and other types of paid or unpaid leave.
Modern Awards and Enterprise Agreements
In addition to the NES, modern awards and enterprise agreements set out specific conditions of employment tailored to various industries and occupations. These instruments detail hourly rates, overtime rates, and penalty rates for work performed outside standard hours. They may also include additional entitlements such as allowances and superannuation contributions, along with industry-specific rules designed to ensure employees receive appropriate pay and benefits for their roles.
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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Internal Resolution
The first step in addressing underpayment is to seek an internal resolution between the employee and employer. Open and respectful communication can often resolve misunderstandings or correct payroll errors without the need for formal escalation.
Employees should begin by reviewing their records and gathering relevant evidence, such as payslips, employment contracts, and timesheets, to identify any discrepancies. With this information in hand, they can raise their concerns directly with their employer, clearly outlining the details of the potential underpayment.
In response, employers should review their payroll systems and the applicable employment agreements to identify any errors and ensure compliance with relevant laws and entitlements. Taking this collaborative approach can often lead to a prompt and fair outcome for both parties.
Formal Complaints
If an internal resolution is unsuccessful, employees can lodge a formal complaint with the Fair Work Ombudsman. This is a straightforward and cost-free process that helps ensure employees receive any unpaid wages and that employers comply with Australian workplace laws.
The process begins by filing a complaint online or via the Ombudsman’s contact form. Employees will need to detail the issue and provide supporting documentation, such as payslips, contracts, and timesheets.
Once the complaint is submitted, the Fair Work Ombudsman may investigate the claim and, where appropriate, arrange mediation to help both parties reach an amicable resolution. If the investigation confirms underpayment, the Ombudsman can issue a compliance notice requiring the employer to rectify the issue within a specified timeframe.
Legal Action
If a resolution cannot be achieved through the Fair Work Ombudsman, employees may pursue legal action to recover their unpaid entitlements.
One option is to lodge a claim in the small claims division of the Federal Circuit and Family Court. This pathway allows employees to claim up to $20,000 for underpayment in a simpler and more cost-effective manner than traditional court proceedings.
For more complex or higher-value claims, employees may escalate the matter to the Federal Circuit and Family Court, where legal representation is often involved. This route is typically used for disputes that require detailed examination of employment law and contractual obligations.
In cases involving deliberate or intentional underpayment, employers may also face criminal prosecution for wage theft. Recent amendments to the Fair Work Act have introduced criminal penalties for wage theft, underscoring the seriousness of intentional non-compliance.
Your HR Team
Meet the dedicated professionals behind your success.
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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.

Cameron brings a wealth of experience to Close Consulting following an extensive career in the Technical, Quality and Production Management fields within the construction and civil engineering industries. Advancing from cadet to manager required identifying growth opportunities. Cameron provides leadership, project management and technical capability coupled with strategic overview to time critical projects.
Underpayment Claim FAQs
How far back can you claim underpayment of wages in Australia?
You can claim underpayment of wages up to 6 years from the date the underpayment occurred. This timeframe is specified under Australian law, including the Fair Work Act 2009.
How to make an underpayment claim?
To make an underpayment claim, start by gathering evidence such as payslips, employment contracts, and time records. Next, check your entitlements using tools provided by the Fair Work Ombudsman to calculate the correct wages. Once you have all the necessary information, you can lodge a complaint with the Fair Work Ombudsman through their online portal or contact form.
What is an underpayment of employee wages?
Underpayment occurs when an employee receives less than their minimum entitlements, including wages, overtime rates, penalty rates, or allowances, as defined in modern awards, agreements, or contracts.
What are the reasons for underpayment?
Common reasons for underpayment include payroll errors or miscalculations, misunderstandings of modern awards or enterprise agreements, and failure to apply the correct minimum pay or penalty rates. In some cases, underpayment may result from deliberate acts such as wage theft.
How can Close Consulting assist with your underpayment claim?
Close Consulting provides personalised support for both employees and employers dealing with underpayment issues. We assess your situation by reviewing payroll records, contracts, and award obligations, then offer strategic advice tailored to your needs. Our mediation services help resolve disputes amicably and cost-effectively, without the need for legal action. For businesses, we also conduct payroll audits, ensure compliance with workplace laws, and implement proactive systems to prevent future underpayments.

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