Compensation Benefits
Fair Work Ombudsman recovers $358 million for underpaid Australian workers
Nearly 250,000 Australians will receive back pay after widespread underpayment investigations across multiple industries.
Almost a quarter of a million Australian workers are about to get a major cash injection, thanks to the Fair Work Ombudsman’s (FWO) underpayment investigations for the 2024-25 period. The FWO managed to claw back a staggering $358 million in unpaid wages, which works out to be more than $1,400 for every affected person.
Ombudsman Anna Booth stated that her team is not slowing down. "We are continuing to expand our collaboration with employer organisations and unions to educate employers and workers," she said. Booth stressed that her team holds "clear expectations to large corporates that following workplace laws must be an ongoing priority."
The huge payout came through a variety of enforcement methods. The FWO launched 73 new court cases against businesses over underpayment and secured a record $23.7 million in penalties. Notable cases included the operators of Sushi Bay, who were ordered to pay $15.3 million, and a separate business that received a $5.1 million penalty for underpaying migrant workers.
Beyond the courts, $47 million was recovered from a series of Enforceable Undertakings—the legally binding commitments companies make to fix and prevent workplace breaches.
Large Firms Are the Main Target
A massive 60 per cent of that $358 million came directly from large corporate employers, who contributed close to $213 million to nearly 118,000 staff members. The Ombudsman made it clear that the corporate sector remains a "continuing priority," having been forced to back-pay over $1.11 billion since July 2020.
The FWO is also seeing a surge in people speaking up. Anonymous tip-offs jumped significantly, from 17,000 reports to 25,608 in 2024–25. Most of these reports came from workers aged 15 to 24, along with apprentices and trainees.
Looking ahead to the next financial year, the FWO will be focusing its efforts on high-risk sectors including aged care, agriculture, building and construction, fast food, restaurants and cafes, large corporates, and universities.
Ombudsman Anna Booth stated that her team is not slowing down. "We are continuing to expand our collaboration with employer organisations and unions to educate employers and workers," she said. Booth stressed that her team holds "clear expectations to large corporates that following workplace laws must be an ongoing priority."
The huge payout came through a variety of enforcement methods. The FWO launched 73 new court cases against businesses over underpayment and secured a record $23.7 million in penalties. Notable cases included the operators of Sushi Bay, who were ordered to pay $15.3 million, and a separate business that received a $5.1 million penalty for underpaying migrant workers.
Beyond the courts, $47 million was recovered from a series of Enforceable Undertakings—the legally binding commitments companies make to fix and prevent workplace breaches.
Large Firms Are the Main Target
A massive 60 per cent of that $358 million came directly from large corporate employers, who contributed close to $213 million to nearly 118,000 staff members. The Ombudsman made it clear that the corporate sector remains a "continuing priority," having been forced to back-pay over $1.11 billion since July 2020.
The FWO is also seeing a surge in people speaking up. Anonymous tip-offs jumped significantly, from 17,000 reports to 25,608 in 2024–25. Most of these reports came from workers aged 15 to 24, along with apprentices and trainees.
Looking ahead to the next financial year, the FWO will be focusing its efforts on high-risk sectors including aged care, agriculture, building and construction, fast food, restaurants and cafes, large corporates, and universities.
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