Being underpaid at work can make you feel stressed and frustrated. Fair compensation is a legal right and an employer’s moral obligation. Thankfully, employees in STEM companies in Australia don’t have to deal with wage theft practices by their employers. It’s more likely that some competing companies are offering better salaries, which may make them feel like they are being underpaid.
If you think you are underpaid through an honest mistake or can score better minimum pay rates elsewhere, there are some steps you can take to get the pay you deserve. This article will discuss the measures you can take to resolve the issue.
What does underpaid mean?
Every employee must be paid the minimum wage and entitlements that apply to every employee in the industry in which they are employed. If your employer is paying you anything less than the minimum pay rate in the industry, then you are underpaid. Underpaying employers can be liable for criminal penalties.
There are two forms of underpayment:
If you are legally underpaid in Australia, your company is not paying you the minimum wage or the award rate that applies to your industry and occupation.
If you are illegally underpaid, your employer is paying you less than what you agreed to in your employment contract or what is reasonable for your skills and experience. This can happen if your employer tries to exploit you by underpaying wages or withholding minimum entitlements like bonuses and commissions.
Workers and employees on work visas are typically the most vulnerable to underpayment. If you believe you are being underpaid, the first thing to do is be certain.
How to determine if you are being underpaid
“Is my employer underpaying me?” If this question has been bothering you lately, there are ways you can determine the answer and put your doubts to rest. Here is how:
Examine your employment contract
If you want to find out if you are being paid enough, your employment contract or enterprise agreement is a good place to start. Gather all relevant information from your employment contract about your wages, awards, entitlements, minimum conditions, and compensation.
Your employment contract will typically include more than just your compensation. So, find out what additional perks and entitlements you are owed. You can also compare your pay slips and wage records with other registered agreements about your employment terms to find out if wages are underpaid.
Find out the national minimum wage and the minimum pay rates in your industry
Next, research industry standards and the next pay cycle and compare your salary to the salaries of other employees in similar positions.
The Fair Work Ombudsman, Australia’s Fair Work Commission, has not issued the minimum wage order for 2023. But in 2022, the minimum wages were set at $21.38 per hour or $812.60 per week. You can check your modern award and the minimum hourly rate on the Fair Work Ombudsman website.
Calculate your estimated underpayment
By now, you know the gross amount of wages and entitlements you are receiving and the minimum amount your bosses are entitled to pay you. Compare how much you were paid with how much you should have been paid according to your award, agreement, or contract.
It would help if you also considered any new laws regarding penalty rates, overtime, annual minimum wage increases, leave payments, or other entitlements you may be eligible for.
How to calculate your underpayment
Here is a quick way to work out your underpayment:
Expected amount (E): You should receive these wages.
Actual amount (A): What are you receiving presently or how much have you received during your employment tenure?
Underpayment (U): The amount of underpayment would be the difference.
So, your underpayment would be Underpayment = Amount (E) – Amount (A).
It’s worth pointing out that not all underpayments are intentional or a result of deliberate wage theft practices. Sometimes, underpaid hours can result from honest mistakes like payroll errors and oversight. This is a good place to start if you want to know more about wage theft.
Regardless of how you are being underpaid, it would be best to take measures to remedy this situation immediately.
What to do if you are being underpaid?
If you feel you are being dishonestly underpaid for your work, you should try to resolve this situation immediately. Here is what you can do:
Ask for a pay raise
If you are being underpaid for long service compared to the going wage rate in your industry, the logical first step is to ask for a raise or revise the payment plan.
Review your job description, past pay records, performance reviews, and feedback, and list your accomplishments and contributions. It would be best to list any unreasonable deductions during the underpayment period.
Meet your supervisor and discuss increasing your pay and other minimum entitlements such as overtime, incentives, annual leave, etc. Present all the information that you gathered, which can support your case, and explain why you deserve the increase.
If they agree and give you a pay raise, it’s a good reason to open a bottle of champagne. But if you fail to break any ground with them, you have two options — resigning or filing a complaint against your employers.
Resign without burning bridges
If your employer doesn’t agree to revise your minimum rates or entitlements and wants to keep underpaying you, turning in your resignation is something you should consider.
Now that you know what you are worth, it’s okay to resign. Resigning without burning any bridges is more important. This is how you can do that:
Inform your manager and HR department of your decision and explain why you are leaving respectfully and honestly.
It would be best if you also offered to assist with the transition and provide a detailed handover. Some of the things you can do to make the handover smooth are helping out with finding your replacement and giving them just enough training to get them started.
Keep in touch with former colleagues and maintain professional relationships if you want to maintain professional relationships with them and open up new opportunities for yourself.
Maintain a positive attitude and avoid speaking negatively about the company or colleagues. You don’t want to burn any bridges by badmouthing your previous company or coworkers during your next job interview. This quality can, in fact, help you stand out from other job applicants when you start knocking on the doors of your next workplace.
Consider filing a complaint
If your employer refuses to negotiate or respond to your request, you may need to escalate the matter and seek assistance.
You can complain to the Fair Work Ombudsman or the Australian Human Rights Commission to claim underpayment or to recover non-payment of wages.
Australia’s Fair Work Act makes it easy to complain against underpaying companies and punish them with civil penalties. You can directly report an underpayment to the Fair Work Ombudsman and get their help in recovering your unpaid wages.
Contact your union
If you are part of a union, you can contact them. They are well-versed in Australian workplace laws and can work it out for you. You can also take your underpaying employers to court and claim underpaid wages. You can do this at the Civil court, the circuit court, or the Magistrate’s court.
Get professional help
Also, seek legal advice before taking any legal action against your employer. You may face retaliation in the form of dismissal, demotion, or harassment. However, a legal professional will advise you on your best course of action and represent you in any disputes or negotiations.
Seek support from colleagues and professional networks
Seeking support from coworkers who may have faced similar situations is also a great idea. They can guide you through what you should do and must avoid when dealing with underpayment.
You can join professional networks or organizations that advocate for fair pay practices. These groups can guide you if you are deliberately doing underpaid work.
Lastly, share your experience to raise awareness and encourage others to speak up against underpayment and force companies that underpay their employers to toe the line.
Conclusion
Being underpaid is not only unfair but can also be illegal. You have the right to be paid fairly and equitably for your work. Follow the steps outlined in this article and get the pay you deserve.
And if push comes to shove, don’t hesitate to get out there in the wild and hunt down better employment opportunities.
