When a wage underpayment or compliance issue surfaces, many businesses instinctively hand it to HR. After all, it involves employees, so it must be a people problem, right?

Wrong.

Remediation projects go far beyond HR’s remit. They are legal, financial and governance risks that, if handled poorly, can spiral into public scandals, regulatory intervention, and serious damage to both balance sheets and reputations.

Why HR can’t carry the load alone

HR plays a role, but the scope of wage remediation projects makes them too big, too technical, and too high-risk to sit on the HR desk alone. Consider what is really at stake:

Legal exposure: Regulators like the Fair Work Ombudsman are unforgiving. Penalties, enforceable undertakings, and public naming can follow if mistakes are mishandled.

Financial impact: Backpay calculations, interest, and penalties quickly add up. What begins as a $50,000 issue can balloon into millions if errors run deep.

Governance accountability: Boards and executives are expected to take direct responsibility. Shareholders, investors, and regulators want assurance that risks are identified and managed, not buried.

Cultural consequences: If remediation is seen as secretive or unfair, trust and morale collapse. Employees talk, and once reputational damage spreads, it is near impossible to repair.

The smarter approach

The most effective businesses treat remediation as a multidisciplinary project. It requires legal, financial, compliance, and HR working in lockstep under executive oversight. This is the only way to ensure accuracy, transparency, and trust with both employees and regulators.

It is not about panic or hiding. It is about proactive governance. Businesses that lead with transparency and precision not only resolve issues faster but also strengthen their reputation as fair and responsible employers.

How Workvergent helps

At Workvergent, we have guided businesses through complex remediation projects, from wage underpayments to award compliance reviews, without the chaos and reputational fallout. Our model reframes remediation as a governance and compliance issue, not just a payroll mistake. We build project structures that satisfy regulators and reassure boards. We balance financial accuracy with cultural sensitivity to protect trust with employees.

Handled correctly, remediation can be a turning point: a chance to restore confidence, demonstrate leadership, and build a stronger culture. Handled poorly, it becomes a crisis.

Time to Reframe Remediation

The cost of getting it wrong is too high to leave wage remediation in the HR basket. It belongs in the hands of leadership, finance and governance. The smartest businesses are acting before the regulator forces their hand. The next move is yours.

Contact us or visit www.workvergent.com.au