Fair Work Ombudsman says 160,000 workers were underpaid in 2024 costing $473 million

Australia’s Fair Work Ombudsman says employers need to put a higher priority on making sure staff are paid properly, with the bulk of underpayments recouped in the past 12 months coming from big corporates.

Yearly data from the workplace watchdog revealed nearly 160,000 people had been underpaid to the tune of $473 million in 2023-2024. It brings total back-payments to workers for the past three years to $1.5 billion.

The top end of town has been a big area of focus for the FWO, which recovered $333m for some 110,000 underpaid people from large corporate sector employers.

Penalties of $21.2m dished out during the year were the highest the FWO has secured since it was established in 2009.

Commonwealth Bank of Australia and CommSec were stung $10.3m for underpaying employees, and dumpling chain Din Tai Fung was penalised more than $4m.

“Our investigations and enforcement actions send a clear message that employers must place a higher priority on ensuring they are meeting their workers’ legal entitlements, and that includes by improving their payroll systems and governance, and investing in advice,” acting ombudsman Michael Campbell said.

Universities, fast food restaurants and cafes, agriculture and building and construction have been raised as priority sectors for the watchdog.

Australia’s higher education sector was “systemically non-compliant” when it came to managing payments, according to the report released Wednesday.

FWO said this was due to its large numbers of casual workers as well as “ineffective governance” and a lack of investment into payroll systems.

And the group has also stepped up its infringement penalties on businesses, issuing 760 notices for record-keeping or pay slip breaches during the year, up from 626 the year before.

“Workplace law compliance should be a shared responsibility of the Australian workplace community,” Mr Campbell said.