Pay

Overpayment of wages

From time to time, employees are overpaid entitlements during their employment or at the finalisation of their employment. The overpayment of entitlements such as leave or wages is not a clear cut issue. Generally, it is accepted that in circumstances where an overpayment is made, the employer and employee come to an agreement to repay the overpayment either in one instalment or in several instalments over a period of time. If an employee refuses to repay the amount owed, the employer may choose to pursue debt recovery options or seek a Court order for repayment of the overpaid wages.

Over time, the courts have determined the circumstances in which an employer can recover an overpayment made to an employee. An employer must demonstrate a genuine mistake that gave rise to the payment made in error. The most common cause of overpaying an employee by an employer is due to clerical or computer input error, e.g. incorrect information put into the payroll system. In most circumstances, such a clerical error is recoverable through the courts. If the overpayment to a staff member was made voluntarily and then an employer changed his or her mind, the money cannot be recovered unless the employee agrees.

Trial periods

You should be paid for work you do. Whether you are a trainee, an employee attending training, or are on a trial, you should still be paid for this time. Make sure you find out when you start whether you will be paid and how much. 

A brief work trial can be legally unpaid if it is necessary to evaluate someone's suitability for the job, and:

• It involves no more than a demonstration of the person's skills, where they are relevant to a vacant position;
• It is only for as long as needed to demonstrate the skills required for the job. This will be dependent on the nature and complexity of the work, but could range from an hour to one shift;
• The person is under direct supervision of the potential employer (or other appropriate individual) for the entire trial.

Junior rates

While all workers must receive at least the minimum hourly rate, if you are under 21 years of age, you may receive a junior rate of pay. This is related to your age and is set at a percentage of the relevant adult rate of pay. Junior rates of pay can vary depending on the industry in which you work. The rates can be found in your relevant Modern Award, Enterprise Agreement or employment contract. If there is no mention of a junior rate, then you will be paid the adult rate. The expert panel of the Fair Work Commission reviews junior wages each year for employees who are not covered by a Modern Award or Enterprise Agreement. See the table at the beginning of this factsheet for more information.

Trainees and apprentices

Trainees and apprentices are employed under a training contract for a fixed period of 6 to 48 months (full-time duration), with a probation period of up to 6 months, depending on the vocation. Training contracts may be part-time, full-time or school based. The employer must allow trainees and apprentices to undertake training, which can be on or off the job and forms part of the training contract obligations. Trainees and apprentices cannot be employed on a casual basis and unless stated otherwise by a Modern Award, are paid for time spent at training.

Wages for people with a disability

In the federal workplace relations system, employees must qualify for the Disability Support Pension from Services Australia to be eligible to be paid disability wages. Disability wages are usually calculated by multiplying the relevant minimum wage with a percentage that reflects the employee’s assessed productive capacity. The resulting wage is commonly known as a ‘productivity-based wage’ or a ‘pro-rata disability wage’. The expert panel of the Fair Work Commission reviews disability wages each year for employees who are not covered by a Modern Award or Enterprise Agreement.