FWO recovers $473m for nearly 160,000 underpaid workers

The Fair Work Ombudsman (FWO) recovered $473 million for nearly 160,000 underpaid workers in 2023-24, taking back-payments to workers to $1.5 billion across the last three years.

The Fair Work Ombudsman filed 64 new litigations in 2023-24, including some concerning the early childhood education and care (ECEC) sector. 

In 2023-24, the Ombudsman secured the largest penalties in its 15-year history, sending a clear message to employers that there is now a firmer culture of accountability across workplaces where Australia’s largest employers, like all others, are expected to prioritise compliance.

Demonstrating the Fair Work Ombudsman’s ongoing focus to protect vulnerable migrant workers, nearly $8 million of the total penalties imposed in the regulator’s completed court cases related to employers of migrant workers and visa holders.

The recovered funds are detailed in the workplace regulator’s newly published Annual Report, which outlines the Ombudsman’s securing of $21.2 million in court-ordered penalties across the year.

More than half of the 2023-24 recoveries came from large corporate sector employers, who together back-paid more than $333 million to nearly 110,000 underpaid employees. This sector, a continuing priority area for the FWO, has had a cumulative $877 million back-paid to workers since July 2020.

“The success of these efforts means both that workers have money they were owed back in their pockets, making a real difference in their lives, and that there is a level playing field for all those employers doing the right thing,” Acting Fair Work Ombudsman Michael Campbell said.

“Our investigations and enforcement actions send a clear message that employers must place a higher priority on ensuring they are meeting their workers’ legal entitlements, and that includes by improving their payroll systems and governance, and investing in advice.”

“We will continue to collaborate with employer organisations and unions to educate employers and workers. Workplace law compliance can and should be a shared responsibility of the Australian workplace community.”

The FWO also entered into 15 Enforceable Undertakings with businesses, which included a total of $30.2 million back-paid to employees and improvements to prevent future compliance issues within these businesses. Most of these Enforceable Undertakings involved back-payments of millions of dollars each.

Over 2,500 compliance notices were issued in 2023-24 which resulted in the recovery of $16.9 million in unpaid wages. 760 Infringement Notices for record-keeping or pay slip breaches were issued, with total fines of $986,616 – an increase from 626 Infringement Notices in 2022-23 and $739,966 in fines paid.

“We are continuing our intelligence-led, priority-driven work in 2024-25, targeting high risk sectors including aged care services, agriculture, building and construction, disability support services, fast food, restaurants and cafés, large corporates and universities,” Mr Campbell said.

“We retain our enduring priorities of assisting small business employers and employees, and vulnerable or ‘at risk’ workers.”

More than 3,000 small businesses received tailored written advice on pay and entitlements from the FWO’s Employer Advisory Service, an increase of eight per cent from last year. Small business-related website information was accessed more than 200,000 times.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50. Report an issue anonymously in English or another language.

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