Updated 1 September 2026: This article has been updated with recent Australian payroll underpayment cases and current information about payroll compliance.
Payroll underpayments are not limited to small businesses with poor record keeping. Some of Australia’s largest employers have discovered payroll errors running for years, often because the rules sitting between an employee’s recorded hours and their final pay were not applied correctly.
The scale of the problem is significant. The Fair Work Ombudsman recovered $358 million for more than 249,000 underpaid workers in 2024-25 alone. Around 60% of those recoveries came from large corporate employers.