More than 181,000 Australian workers received a share of $453 million in back-payments during the 2025-26 financial year, as the Fair Work Ombudsman (FWO) intensified enforcement against employers over unpaid wages and workplace entitlements.
The amount recovered increased by approximately $95 million from the previous financial year, as per a report by News24.
Cumulative back-payments recovered for Australian workers over the past six financial years have now reached almost $2.5 billion, according to the regulator’s annual report published on Thursday.
Large employers account for significant back-payments
Large corporations accounted for $217.3 million in recovered wages and entitlements during 2025-26, benefiting more than 110,000 workers.
Employers operating under 15 enforceable undertakings also repaid $106.6 million, including wages, superannuation and interest, while committing to improve their workplace practices.
The FWO received 31,596 anonymous reports during the financial year, up 23% from 25,608 in the previous year.
The reports helped the regulator identify potential breaches and direct its compliance efforts towards workplaces where underpayments were suspected.
Fair Work Ombudsman Anna Booth said anonymous reports helped identify emerging issues and guide enforcement action.
“We continue to target the root causes of non-compliance and focus our efforts where they can have the greatest impact,” she said.
Underpaid workers across industries receive repayments
The regulator recovered millions of dollars in unpaid wages and entitlements across several industries, including hospitality, construction and aged care.
In the fast food, restaurant and cafe sector, more than $5.6 million was recovered for 3,538 workers, while the regulator commenced 16 legal proceedings.
In building and construction, recoveries exceeded $6.8 million for 932 workers.
Two enforceable undertakings involving Southern Cross Care providers in New South Wales, the Australian Capital Territory and Western Australia also resulted in more than $16 million in recoveries for aged care workers.
These repayments reflect the scale of wage and entitlement breaches identified across the economy and the role of regulatory action in helping employees recover money owed to them.
Fair Work Ombudsman steps up legal enforcement
The FWO commenced 60 legal proceedings during 2025-26 and secured $2.3 million in penalties.
The University of New South Wales was fined $213,120 over systemic record-keeping and payslip breaches that hindered an investigation into underpayments.
The university subsequently signed an enforceable undertaking.
The regulator also secured $171,500 in penalties against the Construction, Forestry and Maritime Employees Union and four Victorian officials.
Booth said the FWO was expanding collaboration with other regulators, employer organisations and unions to improve workplace compliance.
"Our investigations across non-compliant horticulture regions as well as our inquiry into workplace relations compliance in the disability support sector have been enhanced by support from unions and employer groups," she said.
The increase in back-payments highlights the importance of workplace compliance and enforcement in ensuring employees receive their lawful wages and entitlements.
With anonymous reports also rising, the regulator continues to rely on information from workers and other stakeholders to identify potential breaches and direct its investigations.