In a year marked by a dramatic increase in tip-offs from workers, the FWO’s efforts have successfully identified widespread wage theft and sought to rectify these injustices. The record sum, which averages over $1,400 for each affected worker, underscores the ongoing challenges of wage underpayment in Australia’s workforce.
Record Recoveries and Corporate Accountability
According to the Fair Work Ombudsman’s annual report, the $358 million recouped during the 2024-25 financial year was the result of a robust mix of litigation, compliance notices, and enforceable undertakings. Of this total, a significant portion, over $213 million, came from large corporate employers, who were responsible for the underpayment of nearly 118,000 workers.
Key cases included the operators of Sushi Bay, a business with outlets across New South Wales, Darwin, and Canberra, which was ordered to pay $15.3 million after 163 workers were found to have been underpaid by more than $650,000. Additionally, Blue Sky Kids Land Pty Ltd and Q Fay Trading Pty Ltd were penalised $5.1 million for underpaying migrant workers, some of whom were paid as little as $10 per hour. These cases highlight the ongoing issues with large corporate entities failing to meet their obligations to employees.
In addition to litigation, the FWO recovered $8.2 million for 3,438 workers via over 1,200 compliance notices. The recovery effort also included $7.3 million through dispute assistance for more than 2,100 workers. The success of these strategies emphasises the FWO’s increasingly effective approach to tackling underpayment across both large businesses and smaller enterprises.
Rising Worker Vigilance and Tip-Offs
Another key development in this year’s underpayment crackdown is the significant rise in reports from workers themselves. The FWO received 25,608 tip-offs in 2024-25, a marked increase from the 17,000 reports filed in the previous year. This surge in anonymous complaints has been attributed to a growing awareness among workers about their rights and an increasing willingness to speak out against exploitative practices.
Young workers, particularly those aged 15 to 24, as well as apprentices and trainees, were the most vocal group among the tip-offs. The surge in reporting reflects a cultural shift in the workplace, where employees are becoming more empowered to demand fair pay and hold employers accountable. According to Ombudsman Anna Booth, this growing vigilance from workers is crucial in maintaining pressure on employers to comply with workplace laws.
The FWO is planning to build on this momentum, with a continued focus on high-risk sectors such as aged care, agriculture, and fast food. In addition, the agency has committed to further collaborations with unions and employer organisations to improve education and compliance. Booth stressed the importance of ongoing dialogue with employers to ensure that underpayment is not only addressed in the short term but is prevented in the future.
The $358 million payout is a testament to the Fair Work Ombudsman’s dedication to ensuring Australian workers receive their rightful wages. However, the fight against underpayment is far from over, with many businesses still failing to meet their legal obligations.
