Guides / Unpaid wages
Unpaid wages: letters of demand and small claims
If your employer has not paid you what you are owed, a clear written demand is often the quickest way to fix it. This guide explains how to check what you were entitled to, what to put in the letter, and where to go if your employer still does not pay. We act for employees and for employers.
Check what you were owed
Start by finding what sets your pay. For most employees that is a modern award or an enterprise agreement, together with your employment contract. The Fair Work Ombudsman publishes pay guides and an online pay calculator.
Then compare what you should have been paid with what you were paid. Your employer must give you a payslip within one working day of paying you. Common problems include:
- the wrong pay rate or classification;
- overtime, penalty rates or allowances not paid;
- hours worked but not paid;
- final pay not paid after you left.
Gather your evidence: payslips, rosters, timesheets, messages about shifts, and bank statements showing what was paid.
Raise it first
Payroll mistakes happen. If you are still working there, ask your manager or payroll in writing to check the problem and fix it. Give them a reasonable time to answer. Keep a copy.
Your employer must not take action against you because you raised a question or complaint about your pay.
The numbers to know
1 working day
Your employer must give you a payslip within one working day of paying you.
Check what you were owed
$100,000
In a small claim the court can award up to $100,000, plus interest.
If your employer still does not pay
6 years
A claim for unpaid wages and entitlements generally has to be made within six years.
If your employer still does not pay
The letter of demand
If raising it has not worked, a letter of demand sets out the claim formally. It should:
- name your employer by its correct legal name, which your payslips or ABN Lookup will show;
- state the period, and the award, agreement or contract that applies;
- set out the amount owed and how it is calculated, week by week if needed;
- refer to the payslips and records you rely on;
- give a deadline, usually 14 days;
- say what you will do next if the money is not paid.
Keep it professional and stick to the figures. A letter that is calm and precise is harder to brush aside.
There is no special Fair Work form for a letter of demand. It is an ordinary letter, from you or from a lawyer acting for you.
If your employer still does not pay
The Fair Work Ombudsman. You can ask the Fair Work Ombudsman for help. It can contact your employer and try to resolve the matter.
A small claim. You can apply to the Industrial Division of the Magistrates’ Court of Victoria, or to the Federal Circuit and Family Court of Australia, to have an underpayment claim heard as a small claim. In a small claim the court can award up to $100,000, plus interest. The process is less formal. Lawyers can appear only with the court’s permission, but we can help you prepare the claim. If you win, the court can order your employer to pay your filing fee.
Time limits. A claim for unpaid wages and entitlements generally has to be made within six years.
For employers
If you have received a demand for unpaid wages, act on it promptly. Check your records against the award or agreement, and respond before the deadline. If a mistake has been made, fixing it early usually costs less than a court claim. See Received a letter of demand?
Common questions
Have another question? Phone 1800 776 529 or send us a message.
Yes. Leaving does not end your right to be paid what you earned. The time limit still applies.
Possibly. It depends on the real nature of the working relationship. Talk to us before you send a demand.
If you go to court, the court must include interest in its order if you ask for it, unless there is good reason not to.
Law referred to
- Fair Work Act 2009 (Cth) ss 340, 341, 536, 544, 547, 548.
Last reviewed: October 2026, by a Victorian solicitor with a current practising certificate. This page is general information about the law in Victoria as at October 2026. It is not legal advice about your circumstances.
Owed wages, or responding to a claim as an employer?
We can send a letter of demand for a fixed fee of $440 including GST. If you have received a demand, we will quote before any work starts.
Phone: 1800 776 529
Email: info@lettersofdemand.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, email and online.
Letters of Demand is a service of Professional Edge Lawyers.