Employment law, free guide

Underpayment: how to check and recover what you are owed

Underpayment is one of the most common workplace problems and one of the most fixable. Your minimum pay is set by law, you can usually look back up to 6 years, and there are free tools to check your entitlements. This guide explains where your pay floor comes from and the practical routes to recover a shortfall.

Time limit

6 years to recover (Fair Work Act s544)

Small claims cap

A$100,000 (since 1 July 2023)

Free regulator

Fair Work Ombudsman (PACT tool, Infoline 13 13 94)

Wage theft

Intentional underpayment a crime from 1 Jan 2025

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Where your minimum pay comes from

Your minimum pay and conditions are built from a stack of sources, and a contract cannot pay you below them. The floor is set by:

  • The National Employment Standards (the legislated minimum entitlements, such as maximum weekly hours, annual leave, personal/carer's leave, notice and redundancy pay).
  • Any modern award that covers your industry or occupation.
  • Any registered enterprise agreement at your workplace.
  • The national minimum wage, which applies if no award or agreement covers you.

How to check whether you have been underpaid

Start with your payslips, your roster and the classification in your award. The Fair Work Ombudsman runs a free Pay and Conditions Tool (PACT) that calculates the correct base rates, penalties, overtime and allowances for most awards, and you can call the Fair Work Infoline on 13 13 94. Comparing what you should have been paid against what you actually received, pay period by pay period, is the foundation of any underpayment claim.

The 6-year time limit

To recover an underpayment through a court you generally have 6 years from the day the underpayment occurred (section 544 of the Fair Work Act). Because each short-paid pay period is treated as a separate breach, the 6 years runs separately for each one, so it is worth acting rather than assuming an old shortfall is out of reach.

Do not confuse this 6-year window with the very short deadlines for dismissal claims (21 days). They are different things: the 6 years is for recovering money you were owed.

Ways to recover what you are owed

There are several routes, from free and informal to formal court action:

  • Fair Work Ombudsman: free. It can give information, help resolve a dispute, investigate, issue a compliance notice, accept an enforceable undertaking, and in some cases litigate to recover wages and seek penalties.
  • Small claims: a quicker, cheaper and less formal court process (section 548) in the Federal Circuit and Family Court or an eligible state court. The rules of evidence are relaxed. The court can award up to A$100,000 in a small claims proceeding (this cap was raised from A$20,000 on 1 July 2023).
  • Ordinary court proceedings: for larger claims, or where penalties against the employer are sought.

Wage theft is now a crime, but only when intentional

From 1 January 2025, intentionally underpaying wages or entitlements can be a criminal offence under the Closing Loopholes reforms. The key word is intentional: honest mistakes, miscalculations and accidental underpayments are expressly not crimes, and the offence is not retrospective. There is also a voluntary compliance code that can shield very small employers from criminal referral. Most underpayments remain civil matters about recovering the money, not criminal cases.

From practice

Underpayment and dismissal: a general protections angle

Raising a pay concern is itself a workplace right. If you complained or inquired about your pay and were then dismissed, demoted or treated adversely soon after, that can support a general protections (adverse action) claim, with its reverse onus on the employer, on top of recovering the underpayment.

That overlap is also why timing matters. The underpayment claim has a 6-year window, but if a dismissal is involved the general protections or unfair dismissal deadline is just 21 days. If you have been dismissed after raising pay issues, run the free check and speak to a solicitor quickly so the short deadline is not missed.

A note on unpaid superannuation

Unpaid super is mostly chased through the Australian Taxation Office rather than the Fair Work system, although superannuation is now also a National Employment Standards entitlement in limited circumstances. If super is your main issue, the ATO is usually the first port of call.

Figures are general information current as at 1 July 2026. The Fair Work Commission re-indexes the application fee and the high income threshold each 1 July: the application fee rises to A$92.70 from 1 July 2026, and the high income threshold for the new financial year is confirmed by the Commission on or just after 1 July.

Common questions

How far back can I claim unpaid wages?

Generally up to 6 years from when each underpayment occurred (section 544 of the Fair Work Act). Each short-paid pay period is a separate breach, so the clock runs separately for each.

How can I check if I am being paid correctly?

Use the Fair Work Ombudsman's free Pay and Conditions Tool (PACT) to calculate the correct rates for your award, and call the Fair Work Infoline on 13 13 94. Then compare it against your payslips.

What is the small claims process?

A quicker, cheaper and less formal court process (section 548) for recovering underpayments. The court can award up to A$100,000, a cap raised from A$20,000 on 1 July 2023. The rules of evidence are relaxed.

Is underpayment always wage theft?

No. Since 1 January 2025 only intentional underpayment can be a crime. Honest mistakes and miscalculations are not, and the offence is not retrospective. Most underpayments are civil matters about recovering the money.

Is this legal advice?

No. This is general information, reviewed by an admitted Australian solicitor; it is not legal advice. A connected firm provides any tailored assessment.

This page is general information about how the law works, not legal advice, and it does not create a lawyer-client relationship. A NewLaw.ai partner-firm solicitor reviews every eligibility check before any advice is given.

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AI-assisted information, reviewed by an admitted Australian solicitor; not legal advice.

Underpaid at work? How to check and recover what you are owed - NewLaw.ai