Fair Work Ombudsman Recovers $453 Million in Unpaid Wages During 2025-26

The Fair Work Ombudsman (FWO) has announced that it recovered $453 million in unpaid wages and entitlements for more than 181,000 workers during the 2025–26 financial year. According to the regulator, this represents an increase of approximately $95 million, or 27%, compared with the previous financial year.  

The latest figures highlight the continued focus on workplace compliance and wage underpayment in Australia, reinforcing the importance of robust payroll, record-keeping and employment compliance practices.  

What Has Been Announced?

On 14 September 2026, the Fair Work Ombudsman reported recoveries of more than $453 million in unpaid wages and entitlements. The regulator also noted that cumulative wage recoveries over the past six financial years have now reached almost $2.5 billion.  

According to Anna Booth, Fair Work Ombudsman, these recoveries not only benefit underpaid employees but also help ensure compliant businesses are not disadvantaged by employers who fail to meet their workplace obligations. 

Increased Compliance Activity

The announcement also highlighted a significant increase in proactive compliance and enforcement activity. 

During 2025-26, the Fair Work Ombudsman completed more than 2,680 proactive investigations, an increase of approximately 86% compared with the previous financial year. These activities resulted in more than $45 million in recovered wages and entitlements for 13,803 workers.  

The regulator stated that proactive investigations continue to focus on sectors where there is an elevated risk of non-compliance and where targeted enforcement activities can support sustained improvements across an industry.  

Which Sectors Were a Focus?

Large Corporates 

Almost half of all recoveries reported during 2025-26 came from the large corporate sector. Interim figures indicate recoveries of approximately $217.3 million for more than 110,000 workers. The regulator completed 1,161 matters involving large corporates, including disputes, proactive investigations and self-reports.  

Building and Construction 

The building and construction sector remained a priority area, with recoveries exceeding $6.8 million for 932 workers. The Fair Work Ombudsman also completed nearly 3,000 matters in the sector and commenced 14 litigations during the reporting period.  

Disability Support Services 

In the disability support services sector, almost $24 million was recovered for 10,546 workers. The regulator completed more than 1,000 disputes, issued multiple Compliance Notices and continued its ongoing sector-wide inquiry into workplace compliance practices.  

What Does This Mean for Employers?

The latest results demonstrate that wage compliance remains a significant enforcement priority for Australian regulators. While some underpayments arise from genuine payroll or award interpretation errors, employers are expected to ensure workers receive the correct entitlements under applicable workplace laws, awards and agreements. 

Employers should regularly review: 

• Payroll systems and processes 

• Employee classifications and award coverage 

• Overtime, allowances and penalty rate calculations 

• Time and wages record-keeping practices 

• Broader workplace compliance procedures 

This news also aligns with broader workplace compliance developments, including the recently announced Fair Work Court proposal and the Fair Work Commission’s new AI requirements for workplace proceedings, which take effect from 20 October 2026. Together, these developments signal an ongoing regulatory focus on workplace rights and compliance. 

Where Can Employers Find Support?

The Fair Work Ombudsman provides free resources, tools and guidance for employers and employees through its website. Small businesses can also access targeted support resources and advice through the regulator’s Employer Advisory Service.