Key takeaways

  • The Fair Work Ombudsman has published a new Payroll Remediation Program Guide.
  • The Guide is designed to help employers correct significant or complex underpayments of employee entitlements.

What is the new guide?

The Fair Work Ombudsman (FWO) has published a new Payroll Remediation Program Guide (Guide).

The Guide provides employers with a best practice framework for conducting high quality and employee-centred payroll remediation programs in respect of known, or suspected, underpayments of employee entitlements.

The Guide is designed for large-scale and complex payroll remediation programs, involving multiple industrial instruments, a high number of impacted employees or a significant quantum of underpayments.

However, employers with smaller or more straightforward underpayment issues can also benefit from the information in the Guide and understanding the FWO’s general approach to payroll remediation.

How can the Guide help employers?

The Guide contains practical tips, case studies and examples of payroll remediation programs that achieved good outcomes for both employers and employees.

When determining whether, and what, action to take against an employer, the FWO considers the steps the employer has taken to rectify underpayments and the employer’s level of cooperation with the FWO. Following the Guide may help employers avoid, or reduce the severity of, compliance and enforcement action by the FWO.

Helpfully, the Guide also provides guidance on common issues that arise in payroll remediation programs, such as:

  • The time period for the payroll review
  • The application of assumptions to overcome data gaps
  • Offsetting payments
  • When, what and how to communicate with current and former employees
  • Interest on back-payments to employees

How Justitia can help

Justitia can advise employers on how to deal with underpayments, and the remediation of them, as well as how to tailor the best practice principles in the Guide to your organisation’s circumstances.

The Guide does not give specific guidance on proactive measures to assess payroll compliance where there aren’t any known or suspected underpayments.  Speak to Justitia about what regular testing and controls may be appropriate for your business or industry.

For more information or for help with any of the above, please get in touch with our friendly team at info@justitia.com.au.

This is general information only, is current as at 14 May 2025 and may not be applicable to your organisation or situation. It is not a substitute for legal advice and it is important that you obtain specific advice.