HR Foundations & Compliance
Getting the basics right, and finding the exposure before someone else does.
Compliance failures are rarely deliberate, and never cheap
Almost nobody sets out to underpay staff. What happens is more mundane: a classification decision made years ago by someone reasonable, a payroll system configured to match it, and an error reproduced accurately every fortnight since.
The consequences don't scale with the intent. They scale with the number of employees and the number of years.
You might be dealing with
- Uncertainty about which instrument applies to a group of workers
- Classifications you inherited and have never tested
- Allowances, penalties and loadings you're not confident about
- Annualised salary arrangements you're unsure still satisfy the award
- Casual arrangements, conversion obligations or long-term casuals
- Contractor arrangements that may not be what they're labelled
- Record-keeping and pay slip obligations you've never reviewed
- An underpayment you've discovered internally
- A Fair Work inquiry, complaint or audit
What's included
- Coverage and classification review Which instrument applies, to whom, and whether classifications are right: with reasoning documented so the position is defensible.
- Entitlement testing Rates, allowances, overtime, penalties, leave and superannuation, tested against the instrument and against actual payroll output.
- Record-keeping review Employee records and pay slips against prescribed requirements.
- Payroll alignment Making sure the system reflects the instrument, because most recurring errors are configuration errors.
- Remediation Where something is wrong: scope, quantum, correction, and how to handle disclosure and communication.
- Ongoing monitoring Practical checks so the same problem doesn't quietly re-emerge.
Areas we see problems most often
- Classification drift. A role changes over the years; the classification doesn't.
- Annualised salaries. Set at a level that worked when hours were reasonable, and no longer satisfying the award once overtime became normal.
- Allowances. Site, travel, tool, meal and industry allowances missed entirely, particularly for employees who moved from one arrangement to another.
- Casuals. Long-term casuals with regular patterns, and conversion obligations that weren't tracked.
- Contractors. Arrangements labelled as contracting that don't hold up on the substance of the relationship.
- Record-keeping. Straightforward to comply with, frequently overlooked, and carrying penalties in its own right.
Common questions
We've found an underpayment. What now?
Establish the full scope and quantum first, get advice, and don't communicate to employees before you understand the picture. Voluntary identification and correction is regarded very differently from being caught.
How far back do we have to go?
It depends on the nature of the issue and the applicable limitation periods, and the practical answer is often broader than the strictly legal one: particularly where employees are still engaged and the issue would otherwise resurface.
Are we in the state or federal system?
Most incorporated employers are federal, but WA maintains a state system covering certain employers including some unincorporated entities. It changes the instruments and the tribunal, and it isn't always obvious.
Can directors be personally liable?
Involvement in certain contraventions can carry personal liability for individuals, including managers and advisers. It's a real consideration rather than a theoretical one.
Ready to talk?
Tell us what you need and we'll take it from there.
Related services
All services →HR Audit
A structured review of your people practices, documentation and compliance position, with findings ranked by risk and a practical plan.