Wage Compliance Review
A remuneration model review that aligned pay practices to award obligations, strengthened record-keeping, and clarified contract language—reducing underpayment risk and improving confidence in compliance.
At-a-glance
Service area: Compliance & Contracts
Client type: Award-covered workforce
Industry: Mixed / operations-led SME
Engagement outcome: Pay model and documentation uplift; clearer employment terms; improved evidence trail
Confidentiality: Details anonymised and may be representative to protect privacy.
The situation
The business had a remuneration approach that had evolved over time—part award-driven, part “what we’ve always done.” While the intent was to pay fairly, leaders were not fully confident that the structure consistently met minimum award obligations across classifications, allowances, hours patterns, and penalty/ordinary time interactions.
There was also concern that record-keeping and contract wording were not sufficiently explicit to demonstrate compliance if the business was queried or challenged.
Risks we needed to manage
Underpayment exposure: gaps between “all-up” pay and award minimums across different work patterns
Allowance/penalty complexity: inconsistent treatment of allowances, overtime, and penalty rates
Classification risk: misalignment between work performed and the classification applied
Record-keeping gaps: inadequate evidence trail for hours, rosters, and pay component rationale
Contract ambiguity: terms that were not explicit enough for employees or defensible for the employer
Operational practicality: ensuring the solution was sustainable for payroll and leaders to administer
Our approach
Discovery and pay model mapping
Mapped the current remuneration approach, classifications, and typical hours/roster patterns.Award alignment review
Tested relevant award minimums (base, allowances, penalties, overtime triggers) against actual practice and typical scenarios.Risk hotspots and priority actions
Identified areas of greatest compliance risk and the quickest practical fixes.Documentation uplift
Strengthened contract and supporting documentation so the pay model and obligations were explicit and understandable.Implementation support
Provided a clear pathway for payroll and managers to follow going forward.
What we delivered
Remuneration structure review (how pay components interact and where risk sits)
Classification and scenario testing framework (to validate common patterns)
Priority compliance actions and recommendations (practical, staged where needed)
Updated contract language recommendations (clearer, less ambiguous terms)
Record-keeping uplift pack (what to capture, where, and why)
Manager-ready guidance (how to explain pay structure confidently and consistently)
The outcome
The business gained clarity on where it stood, what needed changing, and how to implement changes without creating unnecessary disruption. Contracts and supporting documentation were strengthened to make obligations clearer for employees and more defensible for the employer.
Most importantly, the business reduced reliance on assumptions—moving to a pay model that could be explained, evidenced, and maintained as the workforce evolved.
Key takeaway for SME leaders
Wage compliance risk usually isn’t about intent—it’s about complexity. If your pay approach relies on “it should cover it,” you’re exposed. A structured review that tests real work patterns, improves documentation, and lifts record-keeping gives you both compliance confidence and operational control.
Unsure whether your current pay approach consistently meets award obligations?
Book a Free Intro Call and we’ll outline a practical compliance pathway that fits your business.