Correcting Underpayments: Payroll Remediation Program Guide

#australia #award #compliance #employerguide #enterpriseagreement #fairwork #fairworkombudsman #guide #humanresources #payroll #recommendations #transparency #underpayment May 28, 2025

In April 2025, the Fair Work Ombudsman rolled out a Payroll Remediation Program (PRP) Guide to assist medium-large scale businesses with rectifying underpayment issues and improving compliance moving forward.

The guide has been introduced due to a significant increase in self-reported underpayment issues. The FWO are committed to supporting businesses to handle complex payroll challenges, particularly businesses covered by multiple awards and enterprise agreements. Whilst the initial priority is always to rectify underpayment issues, this guide also focuses on building stronger, fairer and more transparent systems on an ongoing basis.

The guide breaks down a step by step framework to assist employees, this includes:

Diagnosing the problem - identify the scope, causes and extent of underpayment through data, audits and employee feedback.
Designing a large scale employee-centered PRP - A clear plan, documentation and employee support.
Managing employee communications - to ensure employees are well informed throughout the process and confident in the businesses approach.
Finding and paying former employees - locating everyone who has been impacted.
Engaging with the FWO - what employers should expect if they self-report to the FWO, including support available.

Importantly the PRP guide also provides recommendations to ensure compliance moving forward, including:

introducing regular payroll audits
upgrading payroll systems and applying automations where possible
introducing compliance training across HR, payroll and key management teams
strengthening approach to governance

The introduction of the PRP guide is a significant step forward for businesses to rectify their mistakes and support ongoing compliance. Click here to view the Payroll Remediation Program Guide.

For more information or to engage our HR services please contact the Employii team via [email protected]

Author: Jess Roughsedge (HR Consultant)

Correcting Underpayments: Payroll Remediation Program Guide

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