Underpayment of Wages

Underpayment of Wages/ Entitlements

When you are employed by an organisation to perform certain duties or tasks, you must be paid in accordance with your award or enterprise agreement. Depending on your type of employment, you may also accrue entitlements including annual leave and sick leave unless the work is done voluntarily.

There may be situations that arise where you are being underpaid, for example if your employer does not increase your salary in accordance with your age bracket, or if the minimum wage increases but your pay has not, or if you are not accruing entitlements that you are entitled to accrue.

Generally, these issues arise if there has been a mistake in calculations or a payroll error. If you are an employee who believes they have been underpaid or an employer who suspects an employee has been underpaid, it is best that you seek legal advice as soon as possible for the issues to be rectified.

It is a good idea to calculate yourself the particular time period where you believe you may have been underpaid including what salary or entitlement is owed to you. You can then approach your employer or your human resources department to organise for this to be back paid to you.

If the underpayment does not get resolved by your employer, you may need to commence legal proceedings to claim this. If you are filing an application you must do this within six years from the date of the asserted underpayment. Litigation is often costly and time consuming, however if parties cannot resolve the matter themselves or through dispute resolution, underpayment of wages or entitlements may be a matter for the Court to determine.

If you have a legal issue regarding underpayment of wages or entitlements or employment law, please do not hesitate to contact Pannu Lawyers on (02) 9920 1787.

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