Award Misclassification Checker (Australia)
Check whether employees may be classified under the wrong award or pay level. This tool highlights common misclassification risks that often lead to underpayment.
Takes ~45 seconds · No login required · AU guidance only
Answer these questions
Risk assessment
Answer the questions to see your misclassification risk level
Risk score
0
Top risk drivers:
What this means
Misclassification is one of the most common causes of underpayment in Australia.
Common misclassification factors
Multi-role staff
Employees doing multiple roles may need different classifications
Flat rate pay
Flat rates without reconciliation can mask underpayment
Supervisory duties
Often require higher classification levels
This checker assesses risk indicators only. It does not determine award coverage or classification.
What is award misclassification?
Wrong award
Employees may be paid under an award that doesn't match their actual work. For example, a cleaner in hospitality might be covered by the Cleaning Services Award, not the Hospitality Award.
Wrong classification level
Even under the correct award, employees may be classified at the wrong level. A team leader might be paid as a Level 1 when their duties require Level 3 classification.
Duties vs pay mismatch
When actual duties don't match classification, employees may be underpaid. This is especially common when roles evolve over time without pay adjustments.
Common award misclassification scenarios
Entry-level rates for higher duties
Paying employees at entry-level rates when they perform tasks requiring higher classification—such as supervising others, handling cash, or using specialised skills.
Flat rates masking penalties
Using flat hourly rates that aren't reconciled against award minimums, potentially underpaying penalty rates, overtime, and allowances.
Casuals working permanent patterns
Casual employees working regular, ongoing hours may need conversion to permanent employment, with different entitlements and classifications.
Admin vs operational misalignment
Employees hired for administrative roles who regularly perform operational duties (or vice versa) may be covered by a different award.
Why misclassification leads to underpayment
Incorrect base rate
Different classification levels have different minimum rates. A Level 3 employee paid at Level 1 rates is underpaid on every hour worked.
Missed penalty rates
Penalty rates are calculated as percentages of the base rate. When the base rate is wrong, all penalties are calculated incorrectly too.
Missed allowances
Different awards and classifications have different allowance entitlements. Misclassification can mean employees miss out on allowances they're entitled to.
Backpay exposure
Misclassification underpayment can be claimed for up to 6 years. What seems small per pay period becomes significant liability over time.
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Frequently asked questions
- Award misclassification occurs when an employee is paid under the wrong Modern Award or at an incorrect classification level within an award. This can lead to underpayment of wages, penalties, and allowances.
- Misclassification itself is not illegal, but it often results in underpayment, which is. If employees are paid less than their entitlements due to wrong classification, Fair Work can order backpay and penalties.
- No. This tool identifies risk indicators only. Determining the correct award requires detailed analysis of the employer's business, the employee's duties, and the applicable award coverage provisions.
- Not necessarily. Many salaried employees are still covered by awards. Salaries must be reconciled against award entitlements to ensure they meet or exceed minimum award pay including penalties and overtime.
- No. This tool provides general guidance only. For specific advice about award coverage and classification, consult a qualified employment lawyer or workplace relations specialist.
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Disclaimer
This checker provides general guidance only. Award coverage and classification depend on specific duties, industries, and agreements. It does not constitute legal advice.
Award misclassification checker – disclaimer & terms of use
Please read and accept the following terms before using this checker.
1. Risk Indicators Only
This checker identifies potential risk indicators for planning and educational purposes only. It does not determine whether employees are correctly classified or whether underpayment has occurred.
2. Not Legal or Compliance Advice
This tool does not provide legal, HR, or compliance advice. Determining the correct award and classification level requires detailed analysis of the employer's business, employee duties, and award coverage provisions.
3. User Responsibility
You are solely responsible for:
- verifying award coverage with the Fair Work Commission,
- consulting qualified professionals for classification matters,
- ensuring employees are correctly classified under the applicable award.
4. Award Coverage Is Complex
Modern Award coverage depends on many factors including employer type, industry, employee duties, and historical coverage. This checker cannot account for all these factors.
5. No Guarantee of Accuracy
While we aim to provide helpful guidance, we make no warranties about the accuracy, reliability, or completeness of the risk assessment.
6. Limitation of Liability
To the fullest extent permitted by law, RosterElf and its providers disclaim all liability for any loss, damage, or claims arising from the use of this checker or reliance on its results.
Confirmation
I understand that this checker identifies risk indicators only and is not a substitute for professional advice. I will consult qualified professionals for any classification concerns.
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