For too long, payroll has been seen as a back office function, a necessary, but often undervalued, part of doing business. Today, that perception is dangerously out of date. Payroll compliance is no longer just an administrative task. It is a Board level risk, capable of impacting brand reputation, executive accountability, and shareholder value.
Recent guidance from the Fair Work Ombudsman (FWO) makes it clear: if your organisation is not actively ensuring payroll compliance, you are exposing your business, and yourself, to serious financial and reputational harm.
The Australian Payroll Association (APA) exists to help you stay ahead of this critical risk.
Payroll governance is now a leadership issue
The Fair Work Ombudsman’s Payroll Remediation Program Guide sets a very high bar. It outlines that when compliance issues are identified, employers are expected to take immediate, employee centred action, supported by rigorous governance, independent advice, and transparent reporting. The FWO expects Boards and executives to oversee payroll remediation at a strategic level, not to leave it to operational teams alone.
If you think this sounds like a major undertaking, you are absolutely right. Successful remediation programs demand expertise in project management, workplace law, industrial relations, data analytics, employee communications, and system governance. Without specialist support, it is almost impossible for internal payroll teams, already stretched with day-to-day responsibilities, to meet these new expectations.
This is precisely where the Australian Payroll Association can help.
Protect your brand, protect your Board
The consequences of getting payroll wrong are becoming more severe. Public scrutiny, FWO investigations, regulatory penalties, and shareholder activism are all on the rise. In some cases, remediation programs have cost organisations tens of millions of dollars, with ongoing impacts to their brand and executive careers.
The FWO now expects employers to adopt a formal, employee-centred remediation approach, even if only a small underpayment is suspected. Simply repaying employees quietly is no longer enough. Best practice demands full transparency, consultation, documented risk assessments, and continuous assurance processes.
Australian Payroll Association members receive the critical tools, training, and expert insights they need to manage these risks. Our consulting team offers tailored remediation support to businesses who need hands-on assistance designing or delivering a compliant, FWO-aligned payroll remediation program.
Why proactive compliance matters more than ever
The Fair Work Ombudsman’s Guide warns that businesses should not wait for a breach to occur. Proactive testing, regular audits, and strong governance frameworks must now be embedded within every organisation’s payroll practices.
If gaps are found, and they often are, businesses must act swiftly, fairly, and with full Board oversight. From identifying affected employees to designing transparent communications and offering interest on underpayments, the process is complex and unforgiving.
Payroll is not just a cost centre. It is a compliance centre. And compliance, when done well, protects your brand, your people, and your profit.
At the Australian Payroll Association, we firmly believe that payroll is a strategic function deserving of investment and respect. We know that knowledge, systems, and proactive governance are the keys to risk management and business success.
Your next step
If you are responsible for payroll governance, whether you are a payroll professional, HR leader, CFO, or CEO, there has never been a more critical time to act.
Join Australian Payroll Association to access exclusive member only resources, training, and industry leading compliance support.
Or, if you have payroll concerns or suspect non-compliance, contact the APA Consulting Team today for expert guidance in navigating remediation and safeguarding your organisation’s future.
Payroll risk is a Board issue. Make sure it is handled with the strategic care it deserves.
