The Importance of Compliance in HR: 
 Lessons from RSPCA QLD’s $4.3 Million Underpayment Case

In today’s competitive business landscape, compliance with workplace laws is not just a legal requirement; it’s a vital component of ethical business practices. Recent events involving RSPCA QLD, a prominent not-for-profit organisation, have highlighted the critical nature of this issue.

The organisation has recently rectified approximately $4.3 million in underpayments to over 1,000 employees as part of an Enforceable Undertaking (EU) with the Fair Work Ombudsman. This case serves as a stark reminder that even large organisations can falter in their compliance efforts, leading to significant financial and reputational repercussions.

Understanding the Underpayment Issue

RSPCA QLD’s underpayment issues stemmed from the incorrect application of clauses in their Enterprise Agreements. Employees across various roles including veterinary, administrative, retail, and café staff were affected.
The underpayments were not limited to one type of employment; both full-time and part-time workers were impacted. The organisation failed to apply minimum hours entitlements, penalty rates, overtime rates, and allowances correctly, leading to widespread wage discrepancies.

The consequences of these oversights are far reaching. The Fair Work Ombudsman noted that the underpayments spanned several years, from February 2017 to October 2024. This lengthy timeframe exacerbated the financial burden, with back-payments ranging from less than a dollar to over $70,000 for individual employees. Such significant discrepancies underline the importance of proper payroll management and compliance checks.

Why Compliance Matters

The RSPCA QLD case exemplifies a broader trend affecting many organisations, both large and small. Compliance failures can lead to hefty financial penalties, loss of employee trust, and damage to an organisation’s reputation. The Fair Work Ombudsman emphasised that employers must ensure their systems are fit for purpose and meet their obligations to pay employees correctly. Anna Booth, the Fair Work Ombudsman, stated,
“The matter serves as a warning of the significant long running problems that can result from an employer failing to have appropriate checks and balances to ensure workplace compliance.”

This statement underscores the necessity for organisations to prioritise compliance and regularly review their payroll systems to avoid similar pitfalls.

The Path Forward: Implementing Effective Compliance Measures

RSPCA QLD’s response to the underpayment issue involved a commitment to rectify the situation through an EU. This includes commissioning independent audits to check compliance with workplace laws and ensuring that payroll staff receive appropriate training. Moreover, the organisation
has established a hotline for employees to voice concerns regarding pay or working conditions, fostering a culture of transparency and accountability.

For businesses looking to avoid similar compliance issues, here are some actionable steps:

• Regular Audits: Conduct periodic audits of payroll systems to ensure compliance with enterprise agreements and relevant awards.
• Training and Awareness: Invest in training programs for payroll staff to keep them updated on legal obligations and changes in workplace laws.
• Open Communication: Create channels for employees to report concerns about pay and conditions without fear of retaliation.
• Consultation with Unions: Engage with employee unions regularly to discuss compliance issues and gather feedback.


The RSPCA QLD case serves as a critical reminder for organisations of all sizes about the importance of compliance in HR practices. By taking proactive steps to ensure adherence to workplace laws, businesses can protect themselves from significant financial losses and maintain the trust of their workforce.

At Perform HR, we understand the complexities of compliance in today’s evolving workplace landscape. Our team of experts is dedicated to helping organisations navigate the intricacies of HR regulations, ensuring you not only meet legal obligations but also foster a positive work environment for your employees.

Don’t leave your organisation’s compliance to chance. Partner with Perform HR today to enhance your payroll systems, implement effective training programs, and establish robust communication channels. Together, we can build a culture of compliance that protects your business and empowers your workforce.

Contact us today at 1300 406 005 or email us at info@performhr.com.au.