Wage underpayment risks extend to finance and HR roles and a legal expert warns finance and HR teams risk breaching award pay obligations without robust record-keeping
A landmark Federal Court ruling against Woolworths Group and Coles Supermarkets should prompt professional and financial services employers to check whether their own salaried staff – including human resources (HR) professionals, analysts and administrative employees – are covered by an award, according to a Clyde & Co employment law partner.
The decision, handed down by Justice Michael Perram on 5 September 2025, found that Woolworths and Coles could not use broad annualised salary arrangements to offset underpayments in one pay period against overpayments in another. Employers must instead meet every award entitlement – including overtime, penalty rates and allowances – within each individual pay period.
"This is not new legislation, but there was a lack of awareness of it until the recent judgements against Coles and Woolworths, and we are likely to see more off the back of these cases," said Sarah Wood, employment law partner at global law firm Clyde & Co.
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