Alleged Underpayments (and potential wage theft)
Think you're being underpaid? You might be right — and you don't have to figure it out alone.
This information is complimentary only and isn't to be relied upon – refer to source materials, authorities' webpages, or expert advice for matters that may affect your employment.
What Counts as an Underpayment?
An underpayment is when your employer pays you less than what you're lawfully entitled to. This can include:
- Incorrect base pay rate (below your award, minumum, contract, or enterprise agreement)
- Missing or incorrect penalty rates, allowances, or loadings
- Unpaid superannuation
- Incorrect notice pay, redundancy pay, or leave payouts (annual leave, long service leave)
- Unpaid incentive-based payments (such as promised bonuses)
Your entitlements come from either a Modern Award, an Enterprise Agreement (EBA), or your employment contract — but they can never fall below the National Employment Standards.
What Should I Do?
- Gather your records — Collect your payslips, bank statements, rosters, and any employment contracts or agreements. These are the foundation of any underpayment claim.
- Are you a member? Get us involved — Submit a Member Support Form through your Member Portal. Our teams can help you identify whether you've been underpaid, calculate what you're owed, and assist on the best path forward — whether that's negotiating with your employer or escalating further.
Log in at member.redunion.com.au → find "Get Help?" → click "Member Support Form" → complete the form.
We'll be in touch within 24 business hours.
Good to Know
- Can I refuse to work if underpaid? No — this would breach your employment contract and could lead to disciplinary action. However if it seems like you won't be paid, you could refuse to work – but don't expect to be paid for time not worked. It's always best to get advice first.
- How far back can I claim? You have 6 years to make a claim for unpaid entitlements. After that, the right to claim usually beyond the time limitation and unclaimable.
- Are there penalties for employers? Yes. Courts can impose significant penalties for breaches of the Fair Work Act.
Need more help?
If you're a member. Please complete a Member Support Form.
Not a member yet? Well Red Unions generally have a policy to not take on pre-existing issues as we must focus on current member issues. Sometimes the industrial team does allow a maximum 20-minute chat for pre-existing issues (depending on our team's capacity).
To sign-up directly via the sign-up form:
- Visit the signup form relevant to your industry (Nursing / Midwifery | Allied Health | Education | Officer | Other | New Zealand);
- Tick "Yes" when prompted about pre-existing issues;
- Wait for the onboarding emails after that's received –>
- You can fill in an Member Support Form (be sure to tick "Yes" to the pre-existing question – our teams expect honesty on forms).
More information
Common ways to pursue underpaid wages or entitlements
A common strategy when you presume an underpayment may be occuring is the following steps:
- Keep a private, usually written, record;
- If you're missing records, request these from your employer as a "formal request for employment records";
- Clearly and coherently outline the alleged underpayment in writing to your employer, allowing them a reasonable time to rectify (say within 28 days);
- If the matter isn't rectified, and you're not satisfied by the employer's response, it's always good to seek some advice to sanity check your work;
- Still suspect an underpayment? You can try and sue by lodging an application with an appropriate authority (easiest to do alone is a "Small Claim" for amounts less than $100,000) – or just report it to the Fair Work Ombudsman.