Importance of Regular Payroll Reviews

The Fair Work Ombudsman reported that in the 2021-22 financial year a record $532 million was recovered in unpaid wages and entitlements. This was more than 2.5 times that of the previous year.

Some common issues identified by the Fair Work Ombudsman include:

• Inadequate annualised salary arrangements that fail to compensate employees for minimum entitlements;
• Failures to implement enterprise agreement obligations or undertakings;
• Failures to address know issues before comprehensive organisational reviews are undertaken;
• Ineffective governance (sometimes complacency); and
• A lack of investment in payroll systems and staff, record-keeping systems, expertise and auditing.

The latest reports from the Fair Work Ombudsman highlight the importance of Employers conducting regular payroll audits to ensure all employees are being paid correctly and in accordance with their contract, the relevant award or enterprise agreements.

For further information regarding payroll audits, please contact Workplace Legal on (03) 9972 4950 or at

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