Underpayment risk checker for Australian employers
Check your risk of underpaying employees based on common Fair Work risk factors. This tool helps identify potential exposure areas so you can act early.
This checker assesses risk indicators only. It does not determine legal compliance or actual underpayment liability, and it is not legal or compliance advice — for specific advice, consult a qualified professional. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Answer these questions
Six quick questions on your pay practices. Add the optional factors for a sharper read.
Your risk assessment
What causes employee underpayment?
Incorrect award application
With over 120 modern awards in Australia, identifying the correct one can be complex — and applying the wrong award or level leads to underpayment.
Missed penalty rates
Weekend, evening, public holiday and overtime penalty rates are easy to miss when calculated manually.
Unpaid or underpaid breaks
Breaks that are missed, shortened or mis-recorded can quietly create underpayment across a whole team.
Manual payroll errors
Spreadsheets and manual pay runs are error-prone, especially as rules and rates change.
Poor record-keeping
Without accurate time and pay records, it’s hard to prove correct payment if Fair Work investigates.
Why underpayment risk matters
Fair Work investigations
The Fair Work Ombudsman investigates businesses of all sizes — small businesses are not exempt.
Backpay orders
If underpayment is identified, businesses must repay all underpaid wages — potentially going back six years.
Civil penalties
Companies may face civil penalties of up to $93,900 per contravention (2024 rates). The 2024 Sushi Bay case resulted in record penalties.
Brand & reputation
Public underpayment findings can cause lasting damage to your brand and ability to attract staff.
How to reduce underpayment risk
Track actual hours worked
Use digital time and attendance so pay is based on real hours, not estimates.
Automate penalty rate calculations
Apply penalty and overtime rules automatically so weekends and public holidays aren't missed.
Record breaks accurately
Capture when breaks are taken so unpaid time and missed breaks are handled correctly.
Review awards regularly
Check pay against award changes each year — modern award rates update annually.
Reconcile pay runs
Compare what was paid against award entitlements to catch gaps before they compound.
Want to reduce underpayment risk automatically?
Upgrade to RosterElf for automatic time tracking, award interpretation and accurate payroll export.
Free checker
Perfect for quick risk assessments
- Assess underpayment risk factors
- Identify compliance gaps
- Get actionable recommendations
- No signup required
- Automatic award interpretation
- Digital time & break tracking
- Payroll export (Xero & MYOB)
- Compliance audit trail
Full Suite
Rostering, payroll & HR in one
per employee per month
+ GST, billed annually
Payroll & HR tools in one system
- Smart rostering & availability
- Time & attendance (GPS & photo)
- Award interpretation & penalties
- Payroll export (Xero & MYOB)
- HR Hub with employee profiles
- Digital onboarding & contracts
- Policies, certificates & compliance tracking
- Payroll sync with employee records
- Workwise AI compliance assistant
- Central document storage & management
- Leave management with approvals
No credit card required · 15-day free trial
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Frequently asked questions
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No. It assesses risk indicators, not legal exposure or dollar amounts. It helps identify areas where underpayment may be more likely to occur. To estimate a dollar figure, use the backpay exposure estimator.
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Common warning signs are flat hourly rates, no automatic penalty rates, uncertainty about the correct award, and manual or spreadsheet payroll. This checker flags those risk factors; to confirm, reconcile pay against the relevant award or seek professional advice.
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Yes. Business size does not remove compliance obligations. The Fair Work Ombudsman investigates businesses of all sizes, and small businesses are not exempt from penalties.