FWO records landmark year of tip-offs and back payments

Employment lawyers are urging HR to verify payroll and record-keeping systems in the wake of recent data from the Fair Work Ombudsman.

There has been a clear shift in workplace relations regulation in the past financial year.

In its recently published 2025–26 annual report, the Fair Work Ombudsman (FWO) revealed it received 23 per cent more tip-offs than in the previous financial year, while workers received around $95 million more in wage back payments.

Further, the national workplace regulator signed 15 enforceable undertakings (EUs) with employers, totalling more than $106 million, most recently with disability organisation Sunnyfield. Major aged-care providers Southern Cross Care NSW & ACT and Southern Cross Care WA also signed EUs.

As reported by HR Leader, the ombudsman signed multiple EUs with universities over the last year, including that of Murdoch University, the University of Queensland, and UNSW.

Within these recoveries, the FWO uncovered systemic record-keeping and pay slip contraventions within UNSW.

The Construction, Forestry and Maritime Employees Union and four of its Victorian officials also received penalties.

Noting the fast-food, restaurant and cafe sector as a particular area of focus, the FWO said that it recovered more than $5.6 million for 3,538 workers, commencing 16 litigations against employers. Similarly, the building and construction industry saw more than $6.8 million recovered for workers.

HR Leader spoke with Cilla Robinson, partner in the Mallesons employment relations and safety team, to explore what these findings mean for employers.

According to Robinson, the latest figures are a wake-up call for employers, signalling that “employees are better informed and increasingly willing to report non-compliance, often to the regulator rather than internally … that often signals a trust gap in workplace culture”.

Noting that civil penalties for larger employers can reach three times the underpayment, and the regulator’s 60 litigation and 791 infringement notices, Robinson said the risks for employers are real.

In this way, she urged HR to start with an audit.

She said: “Map every role to its award classification and test a sample of rosters and timesheets against payroll for penalty rates, overtime and allowances. Then spot-check pay slips and records against regulatory requirements. Reconcile payroll after every rate change.”

Robinson also encouraged employers to build safe internal reporting channels outside of line management to ensure action won’t lead to adverse treatment.

FWO Anna Booth said: “For all employers, including large corporates, the Fair Work Ombudsman expects a high priority to be placed on following workplace laws.”

Additionally, Robinson said: “Failures can reverse the burden of proof. Reputational damage often follows.”

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