The importance of HR tech: Avoiding wage underpayment

Wage underpayment is a persistent issue in Australia, with businesses across multiple industries making headlines for failing to pay employees correctly. From small businesses to major corporations, many employers have faced significant fines, legal battles, and reputational damage due to payroll errors.

As of January 1, 2025, Australian law has intensified its stance against wage underpayment. Deliberately underpaying employees —  commonly referred to as wage theft — is now a criminal offence. Employers found guilty can face financial penalties and potential jail time. 

With compliance stakes higher than ever, businesses must ensure accurate payroll processing. But what’s the solution? Let’s explore the different steps to take in this guide. 

The root causes of wage underpayment

Understanding why wage underpayment happens is the first step to prevention. Common causes include:

Misinterpretation of awards and agreements

Many businesses struggle to keep up with changes in modern awards and enterprise agreements, leading to unintentional mistakes. For instance, failing to update superannuation percentages can result in compliance breaches.

Inadequate payroll and time and attendance systems

Relying on outdated time and attendance software or manual tracking methods (including spreadsheets, pen and paper, etc.) increases the risk of miscalculations and missing entitlements.

Lack of automation and alerts 

Without built-in compliance alerts, businesses may overlook critical award updates, shift differentials, or overtime requirements.

Poor record-keeping

Inaccurate tracking of hours worked, shift changes, and allowances can lead to systematic underpayment issues.

Deliberate wage theft 

While some cases are accidental, others stem from intentional efforts to reduce payroll costs, which again, as described above, is now a criminal act under Australian law.

Industries most at risk

Certain industries are more vulnerable to wage underpayment due to their workforce structure and complex award systems. 

Hospitality & retail

High turnover rates and a reliance on casual staff make these industries prone to payroll errors.

Agriculture

Seasonal and subcontracted workers are often underpaid due to misclassified employment terms.

Construction 

Labour hire arrangements and fluctuating pay structures create room for payroll miscalculations.

Mining

Complex FIFO arrangements, remote allowances, and multi-layered enterprise agreements make payroll compliance especially challenging.

How OneAdvanced's HR technology ensures payroll accuracy

With over 40 years of experience, OneAdvanced provides tailored people management and HR technology that safeguards businesses against wage underpayment. 

1. Automated award interpretation & compliance

OneAdvanced’s HR technology ensures compliance by automatically interpreting and applying award conditions, including:

• Shift differentials
• Overtime rules
• Allowances and entitlements
• Enterprise agreement conditions

This eliminates the risk of human error and keeps businesses compliant with evolving workplace laws.

2. Real-time processing & validation

Unlike traditional time and attendance systems that operate on batch processing, OneAdvanced offers real-time validation, meaning:

• Immediate alerts for potential discrepancies
• Instant updates when award conditions change
• Reduced risk of retroactive corrections or fines

3. Robust audit trails & reporting

A major challenge for businesses facing wage disputes is proving compliance. OneAdvanced provides detailed audit trails, allowing businesses to:

• Track all award modifications
• Generate compliance reports
• Provide evidence of correct award interpretation if audited

4. Seamless integration with payroll systems

OneAdvanced’s time and attendance integrate with existing payroll software, ensuring:

• Smooth data flow between HR and finance teams
• Reduced manual entry and payroll adjustments
• A single source of truth for employee payments

OneAdvanced also offers a comprehensive performance management tool for businesses seeking a HR solution that helps organisations improve engagement and productivity.

5. Local support & customised implementation

Unlike many competitors that rely on offshore support, OneAdvanced offers:

• Australian-based customer support and implementation teams
• Fully customisable payroll configurations tailored to specific awards and agreements
• Expertise in handling complex payroll structures, including FIFO, shift work, and multi-tiered enterprise agreements

Why now is the time to invest in HR technology

The cost of non-compliance is now too high to ignore. With the criminalisation of wage underpayment in Australia, businesses must take proactive steps to ensure payroll accuracy. Investing in the right HR technology is the best way to:

• Reduce legal and financial risks
• Ensure employees are paid fairly and accurately
• Build a positive employer brand and avoid reputational damage
• Streamline payroll processes and improve operational efficiency

With OneAdvanced’s industry-leading technology, businesses can safeguard their operations while complying with Australia’s complex employment laws.

Ensure payroll compliance today

Avoiding wage underpayment is no longer just a matter of good practice — it’s a legal necessity. By implementing HR technology that automates compliance and eliminates payroll errors, businesses can protect themselves from legal repercussions and ensure employees are paid fairly.

Don’t wait until a payroll error turns into a legal issue. Discover how OneAdvanced can help your business stay compliant and efficient.

Learn more