Stages of a payroll remediation project – Stage 4 Remediation for employees

In our first article, we identified the following five significant stages for companies and their legal advisors to consider:

1. Risk Review
2. Recalculation
3. Issue rectification
4. Remediation for employees
5. Dealing with regulators  

In the previous article, we discussed the third stage of a payroll remediation project: Issue Rectification. We explained key steps including identification of the root cause, system and process changes, training for payroll staff and ongoing audits.  

In this article, we will cover the fourth stage of a payroll remediation project: remediation for employees.

Why is remediation for employees important?

Remediation for employees is not only a legal obligation, but also a moral and ethical one. Underpaying employees can have serious consequences for their financial well-being, trust, and engagement. Employers who fail to remediate for employees may face penalties from the Fair Work Ombudsman, legal action from employees or unions, reputational damage, and loss of talent.

The remediation process

The process of remediating for employees may vary depending on the nature and extent of the underpayments, but generally involves the following steps:

Companies need to comply with any orders or directions from regulators with respect to remediation. We will discuss dealing with regulators in more detail in the next and final article in the series.

How can Grant Thornton help?

Grant Thornton has extensive experience and expertise in assisting employers with payroll remediation projects. We can help you with:

• Design and implement a communication strategy;
• Set-up and management of a hotline to address questions from employees;
• Set-up of an online portal to collate bank account details for former employees;
• Grant Thornton can also provide specialist tax advice on remediation payments. This may include advising on income tax, payroll tax, superannuation guarantee charge issues, preparing and lodging amended tax returns or activity statements

If you need help with remediating for employees, please contact us today. We can help you restore trust and confidence with your employees, and ensure you are paying them correctly and fairly.

Stages of a payroll remediation project – Stage 3 Issue Rectification

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