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MK Law Group

Employment Law

Penalty Rates and Underpayment Lawyers in Melbourne

Penalty rates are the legal minimum for weekend, night, overtime and public holiday work, whatever your employer calls them. If yours are missing, you can claim up to six years of back-pay with interest.

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Working Sundays and public holidays for the same rate as a Tuesday?

Penalty rates are the legal minimum for weekend, night, overtime and public holiday work, whatever your employer calls them. If yours are missing, you can claim up to six years of back-pay with interest.

The same rate on Sunday as on Tuesday is usually an underpayment

If you work under one of Australia’s 121 modern awards, your Saturday, Sunday, public holiday, overtime and night hours almost certainly attract loadings above your base rate, and casuals earn a 25 per cent loading on top of whatever else applies. The national minimum wage is now $26.44 an hour, and award minimums rose with it this year. Those are floors set by law. An employer cannot roster its way around them, and “that’s our standard rate” is not a defence.

The pattern we see most in Melbourne rarely involves an employer paying nothing at all. It is the flat rate that quietly swallows penalties: $34 an hour for every hour, including the Sunday close and the public holiday open, in a job where the award says those hours are worth $45 or more. Multiply that gap across every weekend for six years and you can see why underpayment claims routinely surprise the people who bring them.

If your roster includes nights, weekends or public holidays and your payslip shows one rate, send us the payslip. Call 1800 130 120 and we will tell you on a free call whether the numbers hold up.

What you can recover, and how long you have

Underpayment claims reach back six years, with interest, and unpaid superannuation (now 12 per cent) is chased separately through the ATO. Every pay cycle you wait, the oldest week of your claim falls off the back. Claims up to $100,000 can run through the courts’ small claims process, which is built to be quicker and cheaper than ordinary litigation, and where several colleagues share the same employer and the same problem, the claims can travel together. Those group files are a regular part of what our employment lawyers do, and almost all of them begin with one person checking a single payslip.

The law behind you has also hardened. Penalty and overtime rates in modern awards are now locked in by law and cannot be traded away or reduced through the award system, and deliberate underpayment is now a federal crime. Employers and their advisers know both changes, which is why a well-drafted letter of demand now settles matters that would have been stonewalled five years ago.

Complaining about pay is a protected act

Plenty of underpaid workers stay silent because they expect the roster to punish them for asking. Asking about your pay is a workplace right under the Fair Work Act. If your hours are cut, your shifts vanish or you are dismissed after raising it, that is adverse action, with uncapped remedies on top of the wages themselves. Adverse action of that kind is dealt with under wrongful termination, and the two claims frequently run together.

Six years of back-pay is on the table. The oldest weeks are expiring now.

Send us a payslip and your roster. One free call tells you whether you are underpaid, roughly what the claim is worth, and the fastest way to recover it.

Start with one payslip

You do not need spreadsheets or a legal theory to make the first call. A payslip, a rough idea of your usual hours, and the name of your employer is enough for us to check your rate against the correct award classification, which is where most underpayments hide. Working out which award and level actually covers you is its own battleground, which is why modern awards get a page to themselves. Call 1800 130 120 or use the form on this page. The first conversation is free and confidential, and it is often where people find out what they have quietly been owed for years.

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Meet the firm

Michael Kuzilny

Founder & Principal, MK Law Group

Michael has been working in the Victorian legal system since 1986. MK Law Group acts for individuals, family businesses, and commercial clients across Melbourne, with a senior lawyer on every file from the first call.

"We take on the matters we know we can run well, and we are direct about the ones we cannot."

  • Practising in Victoria since 1986
  • Senior lawyer on every file from day one
  • Free initial advice on every new matter

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FAQs

Frequently asked questions

  • What penalty rates am I entitled to?

    It depends on your modern award or enterprise agreement, but typical award entitlements include loadings for Saturdays, Sundays and public holidays, overtime after your ordinary hours, and shift allowances for evening and night work. Casuals get a 25 per cent loading on top. If you tell us your award and your roster on the free first call, we can usually tell you the same day whether the numbers look wrong.

  • My employer pays a flat hourly rate for all hours. Is that legal?

    Only if the flat rate leaves you better off overall than the award would across every pay period, and the arrangement is properly documented. Flat-rate underpayment is one of the most common patterns we see in hospitality, retail, security and healthcare: the rate looks generous until you count the Sundays, nights and overtime it silently absorbs. We run the comparison calculation for you against the award.

  • How far back can I claim unpaid penalty rates?

    Six years from when each underpayment happened, plus interest, and unpaid superannuation is pursued on top through the ATO. For someone underpaid a few dollars an hour across weekend shifts, six years compounds into a serious figure. Once a week passes the six-year line it drops out of the claim for good, so waiting costs you money every pay cycle.

  • Can my employer cut my penalty rates?

    Not through the award system. The law now expressly prevents the Fair Work Commission from reducing penalty or overtime rates in modern awards or swapping them for arrangements that cut take-home pay. An enterprise agreement can restructure entitlements only if you end up better off overall. If your rates dropped without explanation, something is wrong and it is worth a call.

  • Will I get in trouble at work for claiming?

    It is unlawful for your employer to dismiss or punish you for making a pay complaint or inquiry. That is a workplace right, and retaliation gives you a second, uncapped claim on top of the underpayment. Deliberate underpayment is now also a federal crime, which has sharply changed how seriously employers treat these letters. Groups of colleagues claiming together is common and entirely lawful.

  • What does it cost to recover unpaid wages?

    The first call is free and we tell you honestly whether the claim is worth running. Claims up to $100,000 can go through the small claims process, which is faster and keeps costs contained, and we scope each stage with you on the free first call before work starts. Call 1800 130 120 with your payslips and roster to get started.

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