How Can Employers Prevent Wage Theft

How can employers prevent wage theft given that most underpayment begins as a mistake rather than a decision? Three controls do most of the work.

Check the classification. Confirm which award applies and at what level, in writing, and recheck when a role changes. Most large underpayments trace back to this.

Reconcile annualised salaries. Compare what was paid against what the award would have required, on a set cycle, and keep the working.

Act on the first query. A query answered and documented is an error. The same query raised repeatedly and left unresolved starts to look like a decision, and that changes which regime applies.

Keeping evidence of the steps taken matters as much as taking them, since the regulator weighs what you did if it ever assesses your conduct.

The Fair Work Ombudsman publishes pay and award guidance. This is general information rather than legal advice, and obligations vary by state and territory.

See Sentrient’s HR management system and wage theft webinar.