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Fair Work Centre — For Employers

Paying the Wrong Award? It’s Costing You More Than You Think

Modern award classification and pay rates change every year. Get clear, employer-side advice on which award applies, how to classify roles correctly, and how to fix underpayments before the Fair Work Ombudsman finds them first.

Australian HR manager reviewing modern award pay rates on a laptop

Not a government body
Employer-side advice only
Direct lawyer access — no call centres
Fair Work Commission representation

The Problem

Award Underpayments Are the #1 Compliance Risk for Australian Employers

Award classification and pay rates are set out in the modern awards published by the Fair Work Commission and enforced by the Fair Work Ombudsman — misclassifying even one role can trigger underpayment across your entire workforce once it’s identified.

1

Wrong award, wrong pay

Many employers apply the wrong modern award entirely, or classify staff at the wrong level within the right award — both create ongoing underpayment liability that compounds every pay cycle.

2

Annual wage reviews change the numbers every July

Minimum award rates increase every 1 July. If your payroll isn’t updated in time, you’re underpaying from day one of the new financial year — even if you were compliant the year before.

3

Penalty rates and allowances are easy to miss

Overtime, weekend loadings, casual loadings and allowances are where most underpayment claims originate — they’re often calculated manually and inconsistently across pay runs.

4

Back-pay liability has no cap

Underpayment claims can go back up to 6 years, and since 2024 deliberate underpayment can trigger criminal wage theft penalties — this is not a risk to leave unmanaged.

How We Help

Get Your Award Classification and Pay Rates Right

Fair Work Centre helps Australian employers confirm the correct modern award, classify roles accurately, and build payroll processes that stay compliant as rates change every year.

  • Confirm the correct modern award for each role in your business
  • Classify employees at the correct award level
  • Audit current pay rates against minimum award and NES entitlements
  • Calculate correct penalty rates, loadings and allowances
  • Guide annual wage review and pay rate update processes
  • Advise on rectifying historical underpayments before they escalate
  • Represent your business in Fair Work Ombudsman compliance matters

Key Facts Every Employer Should Know

1 July
Date minimum award rates increase every year
6 years
How far back underpayment claims can reach
100+
Modern awards currently in force across Australian industries
2024
Year criminal wage theft laws came into effect

How It Works

Get Advice in Three Steps

1

Call or enquire

Call 1300 161 828 or book a free initial advice call to flag your award concerns.

2

Speak to a dedicated lawyer

We review your roles, current classifications and pay rates against the correct award.

3

Resolve with confidence

Get a clear compliance plan and documentation that holds up under scrutiny.

Confirm Your Award Compliance Before It Becomes a Claim

A short advice call now can prevent years of back-pay exposure later.

Membership

Plans Built for Ongoing Employer Protection

Standard
$118/month
  • 50+ HR document templates
  • Award classification guides
  • Self-service HR resources

See Plan Details

Professional
$346/month
  • Everything in Advanced
  • Unlimited lawyer advice sessions
  • Fair Work Commission representation

See Plan Details

Common Questions

Frequently Asked Questions

Award coverage depends on the industry your business operates in and the type of work each employee performs — not their job title. Many businesses are covered by more than one award across different roles, so it’s worth having each position formally checked rather than assuming.

Underpayment claims can go back up to 6 years, so historical exposure can be significant. The best approach is a voluntary audit and rectification process — self-reporting and back-paying proactively is treated very differently by the Fair Work Ombudsman than being caught out.

Yes. The Fair Work Commission’s Annual Wage Review sets new minimum award rates that take effect from the first full pay period on or after 1 July each year. Employers need to update payroll systems every year to stay compliant.

Yes, in certain circumstances directors and other individuals involved in underpayments can be held personally liable, particularly where underpayment is found to be deliberate. Since 2024, deliberate and systematic underpayment can also carry criminal penalties.

A modern award sets default minimum terms for an industry or occupation. An enterprise agreement is negotiated specifically for your business and, once approved by the Fair Work Commission, generally replaces the relevant award — but it must leave employees better off overall.

Yes. Casual employees generally receive a loading (commonly 25%) in lieu of leave entitlements, while part-time employees are entitled to pro-rata NES benefits. Applying the wrong loading or entitlement structure is a common and costly compliance gap.

No. Fair Work Centre is an independent private advisory service for employers. We are not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.

Fair Work Centre is an independent private organisation providing advisory services to employers only. It is not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.

Free Initial Legal Guidance For Employers

Speak to an Employment Lawyer at Fair Work Centre

To change or request cancellation of your Client Membership, please email us with your request at: info@fairworkcentre.com.au.

Refer to our Terms of Service for changes or cancellation requests.

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Employers / HR Managers:  1300 161 828
Employees / Workers:  13 13 94

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