Industrial Relations Commission of NSW

Recovery of Remuneration

The Industrial Court of NSW (Industrial Court) can hear applications by workers who claim they are owed money or superannuation contributions by a current or former employer under an industrial instrument.

Under the Industrial Relations Act 1996 (NSW) (IR Act), the Industrial Court can hear applications by public sector and local government workers for recovery of remuneration owing under a NSW industrial instrument, such as an award, enterprise agreement, contract agreement or contract determination.

The Industrial Court can also hear applications by national system workers, such as those employed by a private business or company, or the federal government, for recovery of remuneration under a Fair Work instrument, such as a modern award, federal enterprise agreement or workplace determination. Such claims are governed by the Fair Work Act 2009 (Cth) (FW Act).  

The Industrial Court also has authority to hear applications relating to long service leave entitlements under the Long Service Leave Act 1955 (NSW) and Long Service Leave (Metalliferous Mining Industry) Act 1963 (NSW)

Claims of this kind can be brought by any worker in NSW, regardless of whether they are employed in the national system or NSW state system.

Applications for recovery of money of up to $100,000 can also be made by a registered industrial organisation during proceedings that are otherwise before the Industrial Relations Commission of New South Wales (Commission), such as s 130 dispute proceedings or an unfair dismissal claim under the Industrial Relations Act 1996 (NSW) (IR Act).

What can be claimed?

The Industrial Court has an uncapped monetary jurisdiction in respect of underpayment claims. 

Claims concerning public sector and local government workers 

The Industrial Court may order a NSW public sector or local government employer to pay to an employee:

  • any amount payable under an industrial instrument;1 
  • any amount payable under a contract, if there is an industrial instrument that fixes the minimum rate or amount of remuneration for the work done under the contract;2
  • where remuneration is not fixed by an industrial instrument, an amount determined by reference to an industrial instrument that would otherwise fix the  remuneration payable for work performed under the employee’s contract of employment;3 and 
  • where an industrial instrument contains an obligation to pay superannuation contributions, the amount of any contribution that is unpaid.4

An amount payable under an industrial instrument includes remuneration, commission and reimbursement or compensation for an expense incurred or loss sustained by an employee, where such amount is required to be paid under an industrial instrument.5

In superannuation matters under the IR Act, the Industrial Court may order the employer to pay to a nominated superannuation fund:6

  • the amount of any unpaid contribution; and 
  • the amount that would have accrued in respect of the contribution in the fund had it been paid when due.

Claims concerning national system workers

The Industrial Court may order a national system employer to pay an amount to, or on behalf of, an employee if the Industrial Court is satisfied that:7

  • the employer was required to pay the amount under the FW Act or a Fair Work instrument; and 
  • the employer has contravened a civil remedy provision of the FW Act by failing to pay the amount.8

Unpaid superannuation is an enforceable workplace entitlement under the National Employment Standards. Employees, industrial organisations and Fair Work inspectors may commence proceedings in the Industrial Court to recover unpaid or underpaid superannuation unless the Australian Tax Office (ATO) has already begun court action to recover the same amounts.

Claims for unpaid holiday pay and long service leave

Certain provisions of the Long Service Leave Act 1955 (NSW),9 and Long Service Leave (Metalliferous Mining Industry) Act 1963 (NSW)10 are defined as ‘industrial instruments' for the purposes of underpayment proceedings in the Industrial Court.11

As the application of these legislative provisions is not limited to public sector and local government workers, any worker in NSW seeking to recover long service leave payments under these statutes may file an application in the Industrial Court.

Who can make a claim?

Claims under the IR Act 

An application for an order in respect of a NSW public sector or local government worker, or any worker seeking to recover long service leave payments, may be made by:12

  • the person to whom the money is payable; or 
  • with the written consent of that person: 
    • an inspector; 
    • a person employed in a Public Service agency; or
    • an officer of an industrial organisation concerned in the industry to which the proceedings relate. 

Claims under the FW Act

An application for an order in respect of a national system worker may be made by:13

  • a person affected by the contravention; 
  • an employee organisation; or
  • an inspector. 

How do I file an application? 

An application for recovery of money or civil penalties must be completed and filed with the Registry by email, post, or in person

An application not in respect of a FW Act claim filed by an inspector, public service agency employee or an officer of an industrial organisation on behalf of the applicant must have a written consent form attached to the application.14

An application for recovery of remuneration of up to $100,000 can be made by an industrial organisation during proceedings before the Commission.15 The Commission may deal with the claim even though it is not constituted as the Industrial Court.16  This means that a non-judicial member, such as Commissioner, can make a binding order for recovery of money.

Before the Commission deals with the application, the party against whom the order is sought must be given adequate notice of the application and an opportunity to be heard.  

A single application may be filed for two or more orders against the employer, which can also be made by an officer of an industrial organisation against an employer on behalf of two or more persons.17

When must I submit the application? 

An application for an order must be made within six (6) years of the date on which amount claimed became due.18

What happens after I submit the application? 

In respect of underpayment claims filed in the Industrial Court the matter will be allocated to a Member of the IRC, who will first attempt to conciliate the matter.19

If conciliation is unsuccessful, the matter will be allocated to a Judge of the Industrial Court for orders, directions or determination, or to the Industrial Registrar for directions about procedure.

If orders are required to give effect to a settlement reached at conciliation, this must be done by a Judge or the Industrial Registrar.

Can I claim interest?

The Industrial Court may order that interest be paid at the prescribed rate,21 other than for an order for recovery of unpaid superannuation. The interest may be: 

  • on the whole or any part of the amount owed; 
  • for the whole or any part of the period from when the money became due until the court order is made;22 and 
  • if the whole or part of the amount is paid before the court order is issued, the Industrial Court may still order that interest be paid from when the whole or part of the money became due to the date of the payment.23

Can I be awarded costs?  

In underpayment proceedings under the IR Act, the Industrial Court may award costs to either party and assess the amount of the costs to be awarded.24

For proceedings brought under the FW Act, the Industrial Court can order a party to pay another party’s legal costs only if the Industrial Court is satisfied that:

  • the case was commenced vexatiously or without reasonable cause, 
  • a party’s unreasonable actions or failures caused the other party to incur costs, or
  • a party unreasonably refused to take part in a related matter before the Fair Work Commission, and the court case arises from the same facts.25

 


Industrial Relations Act 1996 (NSW) s 365.; 2 Ibid s 366.; 3 Ibid s 367.; 4 Ibid s 368.; 5 Ibid s 364(1).; 6 Ibid s 368.; 7 Fair Work Act 2009 (Cth) s 545(3).; 8 Civil remedy provisions are outlined in Chapter 4 of the Fair Work Act 2009 (Cth).; 9 Ibid s 12.; 10 Ibid s 12.; 11 Industrial Relations Act 1996 (NSW) s 364(2)(b).; 12 Ibid s 369(1).; 13 Fair Work Act 2009 (Cth) s 539(1).; 14 Industrial Relations Commission Rules 2022 (NSW) r 7A.2(3).; 15 Industrial Relations Act 1996 (NSW) s 380(1).; 16 Ibid s 380(4).; 17 Ibid s 369(2).; 18 Ibid s 369(3).; 19 Ibid s 371(1).; 20 Industrial Relations Commission Rules 2022 (NSW) r 7A.6(1).; 21 Civil Procedure Act 2005 (NSW) s 101.; 22 Industrial Relations Act 1996 (NSW) s 372(1).; 23 Ibid s 372(2).; 24 Ibid s 373.; 25 Fair Work Act 2009 (Cth) s 570.

 

 

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