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when a $6,500 back pay claim turned out to be $2,500

The client

A small nursery. Owner run, small team, the kind of business where hiring is done on gut feel and a good conversation.

What happened

A bloke walked in one day and said he loved the place and wanted a job. No experience at all. They gave him a go. It worked. He turned out to be good at it. He had some management background, so before long he was helping with the admin and the paperwork too. Then the cracks started to show. He left of his own accord. And on the way out, he lodged a back pay claim for around $6,500. The owners had no idea whether the number was right. That is the hard part with a back pay claim. You cannot argue with it until someone does the work, and the work is slow.

What we did

We went back through the entire employment relationship. Step by step. Every pay run, every week he had worked there. Three things had to be answered:

  • What hours did he actually work? Reconstructed week by week from the pay records.
  • Where was he entitled to penalty rates? Checked against the award, not against what the business had assumed.
  • What was his correct classification? This is the one most people miss. He started with no experience and ended up doing admin and management tasks. His classification moved as his role moved, and that changes what he was owed at different points in his employment.

The result

He was owed money. Just nowhere near what he had asked for. The nursery had not realised they were failing to pay penalty rates when they should have. Not deliberate. They simply did not know their roster triggered them. Once every week was rebuilt against the correct classification, the real figure came to about $2,500. That is roughly $4,000 less than the claim. The nursery paid the $2,500. The claim went no further. No escalation, no external process. The owners were very relieved.

The Takeaway

They did not have a back pay problem. They had a payroll problem that became a back pay problem the moment someone left unhappy. The penalty rate error had been running quietly for years. Every other employee was on the same roster. Sorting the claim was the easy part. Sorting the roster was the point.

If you have received a claim

Do not pay the number on the letter. Do not ignore it either. Send it through and we will work out what is actually owed.