Ensure payroll compliance with expert wage auditing
Understand the importance of wage audits and how our we can help you ensure payroll accuracy and legal compliance.
What is a wage audit?
A wage audit is a thorough review of a company's payroll processes and records to ensure compliance with labour laws and wage regulations. It involves verifying that employees are paid correctly according to the applicable minimum wage, overtime rules, and other compensation-related requirements.
Why does your company need one?
Ensuring legal compliance
Reviewing your payroll practices is essential for ongoing legal compliance. Regular audits help businesses adhere to labour laws, preventing legal issues and costly penalties.
Ensuring fair compensation
Wage audits ensure employees are fairly compensated, promoting a positive work environment, boosting morale, and retaining talent. This enhances the company's reputation and supports growth.
Maintaining professional legal privilege
Auditing payroll compliance through lawyers maintains professional legal privilege over all communications, including the audit findings. This ensures confidentiality and security.
Managing underpayment issues
Rectification of underpayment issues should be carefully managed. Wage audits identify payroll discrepancies, and addressing these can help insulate employers from legal action.
What risks result from not conducting a wage audit?
Not conducting a wage audit exposes businesses to significant risks. Without regular audits, companies may fail to comply with legal obligations, leading to severe consequences. Here are some of the key risks:
The statutory limitation period for underpayment issues is six years retrospectively on the present date, increasing the potential financial liability.
Non-compliance may trigger Fair Work Ombudsman investigations and/or prosecutions.
Employers, including company officers and directors, may face substantial civil penalties for wage violations.
As of 1 January 2025, deliberate wage theft will be a criminal offence punishable by up to 10 years imprisonment and/or significant criminal fines.
Get in touch with us
Tell us about your business and our team will reach out soon.