Fair Work Ombudsman Payroll Remediation Program Guide

In May 2025, the Fair Work Ombudsman (FWO) published its Payroll Remediation Program Guide (Guide) to help employers identify and correct large-scale employee underpayments arising under the Fair Work Act 2009 (Cth) (FW Act), a modern award and/or enterprise agreement.

At a high level, the Guide includes information about:

• Designing a large-scale Payroll Remediation Program (PRP);
• Offsetting overpayments against underpayments;
• Managing employee communications;
• Making payments to employees;
• Locating and rectifying underpayments to former employees;
• Corrective measures and future compliance; and
• How to self-report to the FWO.

The Guide outlines the FWO’s expectation that:

• Employers engage with employees, unions, workplace consultation bodies and third parties about the methodology to be included in a PRP.
• Back payment of wages include amounts in respect of interest (noting reference is made in the Guide to payment of interest being a factor considered by the FWO when deciding whether compliance or enforcement action is appropriate).
• Employers be in a position to explain:
  • steps taken to identify and address any gaps or issues with data; and
  • any assumptions made in the course of a PRP.
• Employees be “given the benefit of the doubt” when an employer’s record-keeping practices have been deficient.
• Employers take all reasonable steps to locate and make payment to any former employees impacted by an underpayment.
• The six-year statutory limitation provided by the FW Act apply as a minimum period for review and not operate as a bar to additional remediation beyond the six-year period.

Employers looking to self-report to the FWO and/or to identify and rectify large-scale underpayments may wish to reference the Guide, in conjunction with targeted legal advice.

EMA Legal can provide advice and assistance to any employers concerned about potential underpayments of wages.

A copy of the Guide can be found here.