More than 4,000 technology workers have lodged complaints about being underpaid since 2019, according to data from the Fair Work Ombudsman.

In the 2019-20 financial year, 852 professional and tech services employees lodged a formal request for help with a workplace dispute, known as a Request for Assistance (RFA), resulting in a payout totalling $2.2 million.

In 2020-21 a spike of 929 was reported and in the last financial year 2023-24 the figure dropped slightly to 846.

Whilst the reported figures have not changed significantly, the total payout to workers had drastically grown to $25.4 million.

How tech compares to other industries

Accounting software firm Reckon obtained data from the Fair Work Ombudsman and created a report to analyse the extent of wage theft in Australia.

Reckon’s general manager Alex Alexandrou said industries like professional and technical services, information media, and telecommunications, have some of the lowest rates of wage theft compared to the public administration and safety industry which had the highest rate.

Accommodation and food services sector ranks second but is experiencing wage theft on a much larger scale, with more than 11,000 complaints and 2,553 non-compliant businesses.

“While the IT sectors aren’t free from wage theft, the lower numbers suggest they may have stronger compliance systems, greater pay transparency, and better support for employees.”

Alexandrou adds it is likely that these industries benefit from better payroll technology, clearer employment contracts, and more rigorous HR processes, all of which help reduce the risk of wage theft.

Key findings

In the last five financial years, more than $1.76 billion has been recovered for underpaid workers across all industries, with over half 56.3 per cent of all investigated businesses found to be non-compliant with Australia’s wage law.

Across Australian workplaces there were 16,700 investigations completed, with 9,401 businesses or 56.3 per cent found to be non-compliant.

Further, 68,680 RFAs were lodged over five years.

During the same period, total repayments to underpaid workers surged by 228.2 per cent, reaching $472 million.

Penalties issued for breaches also climbed by 52.8 per cent, from $477,000 to $729,000.

The Northern Territory has the highest rate of businesses not following the rules, with 386.7 out of every 100,000 businesses found to be non-compliant.

It was followed by Tasmania and Queensland which also have high rates of non-compliance, with 241.7 and 236.1 businesses per 100,000, respectively.

Breaches of Fair Work Act 2009

A Fair Work Ombudsman spokesperson said employers are encouraged to read the Fair Work Ombudsman’s Best Practice Guides, which outline steps businesses can take to ensure they’re paying employees correctly, including practical tools, a handy checklist, examples and best practice tips, and explains how the Voluntary Small Business Code will apply.

“Our agency’s priorities and compliance and enforcement policy inform the decisions we make as the independent regulator.

“If we find that a workplace law has been broken, we can use our compliance and enforcement tools to ensure compliance and resolve the issue.”

Most of the time, breaches of the Fair Work Act 2009 involve breaches of civil remedy provisions.

In contrast, prosecutions relate to criminal offences, and the criminal underpayment offence took effect only in January 2025.

The criminal underpayment offence applies only to intentional underpayments.

Ten years imprisonment imposed

In January 2025, the Australian federal government made wage theft a criminal offence under its industrial relations reform package, the Closing Loopholes Act.

This legislation, part of the Fair Work Legislation Amendment Act 2023, has significant penalties, including up to 10 years in prison for individuals and large fines for companies, making employers who knowingly underpay wages or entitlements guilty of a criminal offense.

This legislation aims to address intentional underpayment of workers, with penalties reaching up to $7.8 million for companies and ten years' imprisonment for individuals found guilty.