New Payroll Remediation Program Guide Released by FWO

Still haven’t double-checked your payroll setup? Consider this your sign.

On 16 April 2025, the Fair Work Ombudsman (FWO) released a Payroll Remediation Program Guide (PRP) to help businesses identify and correct payroll errors and non-compliance.

And if you’re thinking, “We don’t have any issues” – we hear you. But payroll mistakes are surprisingly common, even when you’re trying to do the right thing.

We’ve seen it firsthand:

  • A driver moves up a level, but no one updates the pay rate.
  • A software switch knocks out leave accruals.
  • An old spreadsheet with outdated rates quietly causes underpayments for years.
  • Referring to an old pay guide, printed on someone’s desk.

Not because anyone meant to do the wrong thing but because payroll is complicated, and businesses are busy. We believe that’s exactly why Fair Work created this guide.

What’s in the Guide?

The PRP Guide is built for businesses that:

  • Have discovered (or suspect) underpayments
  • Want to fix it properly and fairly
  • Need a clear place to start

It covers how to:

  • Check pay rates against the correct Award or agreement
  • Calculate backpay, even for past employees*
  • Communicate with staff clearly and respectfully
  • Improve systems to avoid future issues
  • Work with the Fair Work if you’re self-reporting

Why It Matters

We’re seeing more and more businesses (of all sizes and in all industries) realising they’ve been underpaying people without even knowing it.

One new client told us:

“We didn’t know the Award had changed – no one told us.” 

This guide helps you get in front of those kinds of problems. It won’t magically fix everything, but it gives you a solid place to start.

It won’t analyse your payroll data, flag classification errors, or interpret complex rostering rules. It also won’t tell you whether your enterprise agreement overrides an Award. Even the FWO says to “scale the guide to your situation”, which is easier said than done when every business is different.

And with 40+ pages of technical detail, it can feel overwhelming if payroll’s not your thing or you’re short on time.

How to Get Started with the Guide

Before diving in, make sure you’ve got a few key things ready:

  • Know which Awards or agreements apply
  • Pull together payroll records and rosters (even from years back)
  • Be ready to double-check position descriptions, classifications, hours, and rates
  • Have someone on hand who is trained to correctly interpret the rules

The guide is most useful once you’ve identified an issue or if you suspect something’s off and want to check.

So, Do You Still Need Support?

Most likely, yes.

If you’re not sure where to begin or just want peace of mind, get in touch. We can help interpret the guide, review your setup, and support your remediation process from start to finish.

As always, we’re here to provide as much or as little help as you require – so reach out and let’s chat about how we can help you avoid the costly mistakes.

Get in touch with our team today to discuss how we can help.

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