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Underpayment Risk Check for Australian Employers

Since 1 January 2025, intentional underpayment has been a criminal offence under the Fair Work Act, and inadvertent errors still carry civil penalties and back pay. The Underpayment Risk Indicator from Brookvale HR Solutions is a free underpayment risk check for employers who want a quick read before anything else. Four questions give you an instant self-assessed risk band. It is an indicator, not a compliance finding.

Any employees on annualised salary instead of being paid against the Modern Award?

NoYes, someYes, mostNot sure

What the Four Questions Cover

Each question targets a pay practice where underpayments commonly start:

• Salaried employees whose pay has never been reconciled against the award
• Classifications that have not been reviewed since the employee started
• Overtime, weekend and public holiday work
• Flat rates or salaries that have not been tested against every award entitlement

Your answers produce a low, moderate or high risk band straight away. Enter your email for the per-question breakdown, which you can also download as a PDF report.

This is not a back-pay calculator. It does not work out what any employee is owed, and a high band does not mean an underpayment has occurred. For high-risk results, the report sets out the maximum criminal penalties under the Fair Work Act. These maximum figures apply to underpayments on or after 1 July 2026. Lower maximums apply between 1 January 2025 and 30 June 2026, and the criminal offence does not apply to conduct before 1 January 2025.

Pairs With the Wage Compliance Audit

The indicator tells you where to look. A wage compliance audit tells you what is actually there: Daniel tests award coverage, classifications, pay rates and payroll settings against what each employee has been paid, and documents the result. For the wider picture, the Paying Correctly guide sets out the civil and criminal exposure, and the blog explains what the wage theft offence covers.