2 min read

When can overpayment of wages in one pay period set-off underpayment in another?

The Case

CFMEU v Fremantle Port Authority (2024)

The Federal Court considered whether a fixed fortnightly wage payment, calculated by dividing an annual salary by 26, could be set-off against an obligation under an enterprise agreement to pay wages calculated by reference to the hours actually worked in each fortnight.

The employees worked under a rotating shift schedule, where their ordinary hours of work would fluctuate between 72, 84 or 96 hours in any given fortnight. The employer paid an average fortnightly amount, resulting in some pay periods where employees received more than the hours worked and others where they received less.

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