The workplace relations department has admitted underpaying its staff. 

The Department of Employment and Workplace has admitted to underpaying 99 of its employees, requiring a $200,000 payout to rectify. 

The underpayment allegedly occurred between July 2022 and August 2023, with 93 of the affected employees still working for the department. Individual payments varied, ranging from approximately $9 to over $4,000, with an average of more than $630.

The issue came to light after an internal inquiry within the Department of Employment and Workplace Relations, prompting its secretary, Natalie James, to notify Employment and Workplace Relations Minister Tony Burke on July 25. 

Reports say the affected staff received their reimbursements this week.

Ms James attributed the underpayment to changes resulting from departmental adjustments following the 2022 election. 

The Department self-reported the issue to the Fair Work Ombudsman on August 9, 2023.

During a Senate Estimates hearing this week, Ms James revealed that the total amount to be repaid to the 99 staff was $62,926.52, including an indexation payment. 

The average repayment amounted to $635.25, with the highest repayment being $4,051.07. Legal advice and external consultants incurred costs of $119,625 and $75,866, respectively, to address the underpayments.

This incident highlights concerns about the complexity of workplace regulations and the challenges faced by small businesses. 

In 2021, the Department of Finance also admitted to underpaying its employees.