What is an Underpayment?

Published December 2019

Most business owners see the word ‘underpayment’ and assume that because they are paying their employees the correct pay rate, they don’t need to continue reading or consider how their business could be at risk.

Underpayments relate to so much more than just pay rates. They are typically a simple mistake or overlooked entitlement that is multiplied over time. Believe it or not, this list is not exhaustive! Here’s a few others we’ve helped rectify recently:

❌ Annual and sick leave accruals
❌ Annual salary arrangements
❌ Flat rates
❌ Ensuring EA rates continue to pass the BOOT for the life if the agreement

Underpayments are a huge area of focus for the Fair Work Commission and we strongly recommend all employers review their current arrangements with employees to ensure their legal obligations are being met.


Our HR Health Check service is only $595 +GST for small businesses and will ensure you understand and comply with your legal obligations as an employer. The assessment process is relaxed and educational so you’ll be equipped with everything you need to know to achieve compliance. The fee is just a small price to pay when compared to the fines and reputational damage that could result from not paying employee entitlements correctly and not keeping the right records.


You can reach us via: 📞 0459 818 011 🖲 emma@edwardshr.com.au 📱 https://edwardshr.com.au/

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