Minimum Wage & Wage Arrears

Employees aged 16 and over must generally receive at least the applicable minimum wage for every hour worked, subject to the statutory categories and lawful exemptions. Wage cases are often about hours as much as they are about the stated hourly rate.

The payslip rate is not the whole calculation

A salaried employee can still have a minimum-wage problem. If the employee works enough hours that their pay for a pay period falls below the applicable minimum wage for the hours actually worked, the salary figure does not cure the shortfall.

This is why opening work, closing work, required meetings, handover time, compulsory training, after-hours duties and other work outside the roster can matter.

Required training can be work

Training required by the employer and undertaken as part of normal working arrangements must generally be paid. New employees are not free labour simply because they are learning the job.

Starting-out and training rates are specific categories

An employer cannot simply choose the lower rate because an employee is young, inexperienced or an apprentice. The employee must actually meet the statutory requirements for the starting-out or training minimum wage. Employees whose role includes supervising or training other workers must generally be paid at least the adult minimum wage.

Other wage issues can sit beside minimum wage

• Unpaid agreed wages or salary.
• Unlawful deductions.
• Unpaid required work before or after rostered hours.
• Holiday pay and final-pay issues.
• Failure to keep accurate wage and time records.
• Incorrect treatment of compulsory training.
• Pay-as-you-go holiday pay issues for employees who are not genuinely irregular or intermittent.

Evidence is everything

Wage arrears are arithmetic once the underlying hours and rates are established. The difficulty is often proving the real hours worked. Save contemporaneous material rather than relying only on memory months later.

• Payslips and bank statements.
• Rosters, timesheets and clock records.
• Texts or emails showing start/finish times.
• Job sheets, vehicle GPS, system logins or other records of work activity where relevant.
• Employment agreement and pay-rate changes.
• Your own contemporaneous record of hours actually worked.

Simple salary check

As a rough first check, compare the gross pay attributable to the pay period with the number of hours actually worked. If the effective rate is below the applicable minimum, the detailed payroll and legal position should be reviewed.

Casual Employment Unfair Dismissal

Frequently asked questions

I am on salary. Does minimum wage still apply?

Yes. Salary does not remove minimum-wage protection. Hours actually worked can be critical to the calculation.

Can compulsory training be unpaid?

Training required by the employer as part of the job is generally work that must be paid. The exact arrangement should be checked.

Can my employer average a low week against a high week?

Minimum wage must be met for the relevant work/pay period under the applicable rules. Employers cannot simply average wages across a long season to avoid minimum-wage obligations.

General information only — wage calculations depend on the applicable rate, pay period, hours and employment arrangement.