“We’ll Fix Your Pay Next Week” What to Do When Your Employer Is Underpaying

Why Employers Stall

When an employer tells you they’ll fix your pay “next week,” there are usually a few reasons behind that stalling tactic:

• Cash flow problems. Some small businesses may genuinely be experiencing cash flow difficulties and are postponing the correction.
• Avoiding the issue. Others hope the employee will forget or accept the underpayment if they wait long enough.
• Fear of exposure. If the underpayment is intentional or has affected multiple employees, fixing it for one person might expose a broader systemic problem.
• Lack of HR systems. Smaller employers sometimes lack proper payroll processes and genuinely don’t know how to correct the issue.

Whatever the reason, stalling is not a legal defence. An employer’s promise to fix your pay “next week” doesn’t erase the money you’re owed or the breach of your employment rights.

The Legal Reality: Underpayment Is Serious

Intentional underpayment of wages or entitlements is now a criminal offence under the Fair Work Act. This is not just a civil breach anymore.

If an employer deliberately underpays wages, falsifies records, or intentionally obscures how much they’re paying an employee, the consequences can be severe:

• Large fines imposed by courts
• Prison sentences in serious cases, particularly where the underpayment is deliberate and substantial
• Compensation claims from affected employees
• Reputational damage and media attention
• Fair Work Ombudsman investigation and enforcement action

Honest payroll mistakes are different. Employers who make inadvertent errors and correct them promptly have specific protections and compliance pathways. However, saying “everyone does it” or “we’ll fix it later” is no longer a safe excuse when underpayments are intentional or ignored.

What You Can Do Now

If your employer is stalling on fixing your pay, you don’t have to wait passively. Here are practical steps:

1. Document Everything

Keep detailed records of:

• All communications about the underpayment (emails, texts, notes of conversations)
• Your pay slips and what you were promised to be paid
• The dates you raised the issue and what your employer said
• Any follow-up communications where you asked for the payment

This documentation is crucial if you need to make a formal complaint later.

2. Put Your Concern in Writing

If you haven’t already, send your employer a clear email or letter setting out:

• The specific underpayment and how much you are owed
• The dates affected
• Reference to your contract, award, or agreement
• A reasonable timeframe for correction (e.g., within 2 weeks)

A written record is stronger than a verbal request and shows you’ve given the employer a fair opportunity to fix it.

3. Know Your Rights Under Fair Work Law

You already have the right to pursue this independently of any legal reform. The Fair Work Act protects employees in Australia, including those in Victoria and Queensland. You can:

• Lodge a complaint with the Fair Work Ombudsman, which can investigate for free
• Seek unpaid wages through the Fair Work Commission
• Bring a civil claim for the unpaid amount in court
• Contact your state or territory employment agency

4. Seek Legal Advice

An employment lawyer can:

• Review your contract and pay slips to confirm you’ve been underpaid
• Calculate exactly how much you’re owed
• Advise on the best pathway to recover the money (complaint, claim, or negotiation)
• Protect your position if there’s a risk of dismissal or disadvantage

5. Consider Escalation

If the employer continues to stall after you’ve given them a written opportunity to fix it, you can escalate by:

• Contacting the Fair Work Ombudsman (free service)
• Filing a claim with the Fair Work Commission
• Engaging a lawyer to send a formal demand letter
• Making a report to your state or territory employment regulator

What Employers Should Know

If you’re an employer reading this, stalling on wage corrections is risky. Here’s what you should be doing instead:

• Fix underpayments promptly once identified, even if it was a mistake
• Keep accurate payroll records and conduct regular audits
• Communicate with affected employees about corrections and back pay
• Seek legal or HR advice if you’re unsure about compliance
• Don’t use cash payments or informal arrangements as a way to avoid compliance

Acting quickly to correct a mistake is far less expensive, financially and reputationally, than defending an investigation or court claim.

Also read: Um guia sobre demissão injusta na Austrália

Frequently Asked Questions

How long do I have to claim unpaid wages?

You can claim unpaid wages for up to six years in most states, but the exact timeframe depends on your location and the circumstances. An employment lawyer can advise you on your specific situation.

Can my employer dismiss me for raising an underpayment?

No. The Fair Work Act protects you from adverse action if you raise a complaint about underpayment. If you’re dismissed or disadvantaged for doing so, you may have grounds for a claim.

What if my employer says they can’t afford to pay me back?

An employer’s financial difficulty is not a legal defence to underpayment. You have the right to be paid what you’re owed.

Do I need a lawyer to lodge a Fair Work complaint?

No, you can lodge a complaint with the Fair Work Ombudsman for free. However, a lawyer can guide you through the process and help maximise your recovery.

How Kingsford Lawyers Employment Specialists Can Help

Our employment law team advises employees and employers across Queensland and Victoria on wage disputes, underpayment claims and Fair Work compliance. If your employer is stalling on your pay, or if you’re an employer concerned about wage compliance, we can provide clear, practical guidance on your options.

Contact Kingsford Lawyers online or call 1300 244 342 for a confidential, obligation-free chat about your wage concerns.