Continuous monitoring of payroll compliance post remediation

In Australia it has become very common for large companies to report employee underpayments. This means these companies have had to invest huge amounts of resources and money to undertake a large-scale remediation project.

There are significant costs in determining the sum of the underpayments, as well as damage to reputation, damage to investor and employee confidence. These negative impacts make it a very difficult and undesired process for companies of all sizes. 


Increased awareness

Due to the increase in underpayment stories as well as peak body and government attention there has been an increased awareness around payroll compliance, leading to an increased interest in solutions that provide insights and confidence in payroll systems and processes. 

With the market maturing, company boards have now placed more emphasis on payroll controls. As the main responsibilities of any board are corporate governance, risk mitigation and strategic direction it’s become more important for them to limit the chances of employee underpayments, especially following a remediation project. 


Following a remediation

We have worked with customers through remediation projects and understand how hard it can be. More importantly we understand how hard it can be to manage stakeholder expectations following a remediation project. 

It is vital to build back investor confidence, win back employee trust and get on with the core function of the business. It’s also extremely important to ensure ongoing compliance, achieved through paying employees their correct entitlements. 

To achieve all of this, the board will ask a number of questions so they are confident the right controls and processes are being put into place. 

Key questions the board may ask post remediation

  1. Are we remaining compliant post remediation?
  2. Are our salary packages sufficient to pass the Better Off Overall Test?
  3. Have we got the most comprehensive controls and interpretations in place to maintain compliance long-term? 
  4. What processes can we improve to avoid both underpayments and overpayments? 


Why use a continuous monitoring solution post remediation?

The best way to answer the four questions above is to continuously monitor payroll compliance. This can be achieved through the use of an independent, ongoing payroll compliance solution that monitors 100% of the workforce every payrun. 

Why is something like this important post remediation?

In our experiences companies that have undergone a remediation project have been required to provide evidence of controls to prove to the Fair Work Ombudsman (FWO) that an issue like this will not occur again. 

A remediation is not a set and forget solution, there is still potential for errors to arise, especially since new systems and processes have probably been implemented following a remediation. Implementing new controls might mitigate some errors but could potentially lead to others. 

The last reason ongoing monitoring of compliance is important is because the market is very dynamic. There are frequent changes to government legislation, especially changes to awards. This may impact how some employees should be paid, which may be missed or incorrectly implemented without ongoing monitoring. 


For more information on an ongoing payroll compliance solution contact us here.

The PaidRight Team


PaidRight ( is currently undertaking some research to develop some new tools aimed at supporting Payroll and Finance teams. These tools will help Australian businesses understand and interpret the award they work with so they can have confidence that they’re paying their employees correctly.

To develop the product, we’re speaking with people in finance and payroll teams to understand current processes, pain points and opportunities for improvement within existing processes and systems related to pay. In exchange for your participation, we’ll donate $150 to a charity of your choice.

Join the research group here