$1m In Underpayments Clawed Back For WA Workers

Industrial inspectors in the Department of Local Government, Industry Regulation and Safety clawed back over $1 million in underpayments for WA workers in 2024-2025.

The underpayments covered a range of employment entitlements including wages, annual leave and long service leave. Around 230 employees had their entitlements recovered following the intervention of an industrial inspector.

The most commonly underpaid entitlement was long service leave, which most private sector employees in WA are entitled to take after 10 years of continuous employment. Employees with at least 7 years' continuous employment are generally entitled to payment for long service leave when their employment ends.

Private Sector Labour Relations Director Cara Breuder said the Department had established a dedicated long service leave unit, to address the identified high level of non-compliance.

"For consecutive financial years now, long service leave has been the most commonly underpaid entitlement dealt with by industrial inspectors," Ms Breuder said.

"Long service leave is a significant entitlement for employees, and it is concerning so many employers seemingly misunderstand their obligations or in some instances disregard them."

Ms Breuder noted that underpayment of wages was most prevalent in the cafe and restaurant sector, identified as a high risk sector for potential wage theft.

"Industrial inspectors continue to target known problem sectors for unannounced inspections. Employers are encouraged to be proactive to ensure they are complying with their employment obligations, including record keeping."

A previous campaign in the cafe and restaurant sector by industrial inspectors found that four out of five businesses were not complying with State employment laws.

Information on employer obligations is available at www.lgirs.wa.gov.au/wageline or by calling Wageline on 1300 655 266.