Regulator sees 27% increase in recoveries as it doubled proactive investigations
The Fair Work Ombudsman (FWO) recovered $453 million in unpaid wages and entitlements for more than 181,000 workers in 2025-26, after nearly doubling proactive investigations in priority sectors.
Data released by the national regulator on Monday showed a 27% increase, or about $95 million, in recovered wages and entitlements from the previous year.
This year's recoveries also bring the cumulative back-payments to almost $2.5 billion over the last six financial years.
Proactive investigations nearly double
The growth in recovered wages and entitlements comes as the FWO almost doubled its proactive investigations to more than 2,860 in 2025-26, leading to recoveries worth over $45 million for 13,803 workers.
"Our proactive investigations are conducted primarily in priority sectors where planned field work and campaigns and inquiries are designed to uncover drivers of non-compliance to help deliver sustained change," said Fair Work Ombudsman Anna Booth in a statement.
The building and construction sector, a priority area for the FWO, had recoveries reaching more than $6.8 million for 932 workers, with nearly 3,000 matters completed and 14 litigations commenced.
Another priority area is the disability support services, where the FWO said it recovered nearly $24 million for 10,546 workers, as it completed more than 1,000 disputes.
According to the FWO, the majority of the recoveries were due to proactive compliance activities. It also issued 53 Compliance Notices, which accounted for over $8.1 million in recovered entitlements, as well as entering three Enforceable Undertakings.
Meanwhile, Australia's large corporate sector contributed nearly half of the financial year's recoveries, with interim data showing the regulator recovered $217.3 million for over 110,000 workers.
The FWO also completed 1,161 matters involving large corporates, including 1,051 disputes, 73 proactive matters, and 37 self-reports.
The regulator also entered an Enforceable Undertaking (EU) with Westpac, which self-reported its underpayments last year totalling over $50 million and affecting nearly 47,000 employees.
The FWO added it also handed out 23 Compliance Notices and 13 Infringement Notices to large corporate employers.
FWO's message to employers
The FWO attributed the massive recoveries in Australia's large corporate sector to the environment that it fostered to prioritise compliance and self-reporting.
Booth further urged employers to help build a culture of compliance when it comes to wages and entitlements.
"My message to employers, workers and their advocates everywhere is don't let the adversarialism that can beset debate over expansion of rights – in legislative reform and bargaining – stop us working together to build the culture of compliance that we have as agreed common ground," Booth said.
"We know there's a continuum of non-compliance, from inadvertent mistakes to deliberate acts, and we act proportionately to what we find, but we're here to help all parties with free resources and advice to support sustained compliance."
