NAB’s Fair Work Undertaking Explained: What the $169 Million Remediation Means (Nov. 12, 2026)

Verified and updated: November 12, 2026, 5:07 p.m. AEDT (UTC+11:00)

National Australia Bank (NAB) has entered an enforceable undertaking with the Fair Work Ombudsman (FWO) after admitting workplace law contraventions connected to underpayments affecting 65,999 current and former employees. The FWO says NAB is completing payments of $127 million in wages and entitlements, plus $34 million in interest and $8 million in superannuation, and will make a separate $2 million contrition payment to the Commonwealth.

The agreement is significant because it sets out a formal plan for finishing remediation and addressing payroll and compliance weaknesses. It is a regulatory undertaking, not a court judgment imposing a penalty. Under the Fair Work Act, an undertaking is a written commitment accepted by the FWO in relation to suspected contraventions; the NAB agreement also includes detailed requirements for future systems, oversight and audits.

Destaques

• The FWO says 65,999 workers were affected by underpayments spanning more than a decade.
• Payments include $127 million in wages and entitlements, $34 million in interest and $8 million in superannuation.
• NAB has committed to a $2 million contrition payment to the Commonwealth and further compliance measures.
• The undertaking requires payroll review, independent audits, stronger reporting and planning for future enterprise agreements.

What is an enforceable undertaking?

An enforceable undertaking is a written commitment an employer gives to the FWO in connection with workplace law contraventions. Section 715 of the Fair Work Act 2009 allows the Ombudsman to accept an undertaking where it reasonably believes a civil remedy provision has been contravened, subject to limits in the Act. The undertaking is not simply a voluntary public statement: it records commitments the regulator has accepted, and NAB’s document specifies actions, reporting and checks.

The FWO uses a range of outcomes following investigations, including compliance notices, litigation and enforceable undertakings. The agency says outcomes depend on the evidence, the contraventions, their seriousness and the cooperation of those involved. For NAB, the Ombudsman said the undertaking was appropriate given the bank’s cooperation, its remediation work and its commitments to strengthen compliance.

What led to NAB’s undertaking?

NAB first self-reported underpayments to the FWO in late 2019 after discovering significant errors in implementing an enterprise agreement. A broader review then identified problems reaching back to 2012. The FWO says a later review, prompted by implementation of a 2024 agreement, found that earlier work had not identified and fixed all compliance issues, and that underpayments had continued.

The admitted issues concerned entitlements under the National Employment Standards and NAB enterprise agreements from 2011, 2014, 2016 and 2024. The FWO lists ordinary wages, penalty rates, shift loadings, overtime, allowances, termination payments, leave and superannuation among the affected entitlements. The regulator attributes the failures to weaknesses including governance and compliance oversight, record-keeping, legacy payroll technology and limited specialist capability.

The FWO says individual payments range from less than $5 to more than $87,000, including interest and superannuation, with an average of about $1,934. As of its November 12 announcement, the bank had paid at least $155 million to current and former employees, while the broader payroll review remained in progress. NAB says it will notify affected people directly and provides a dedicated remediation contact.

What must NAB do under the agreement?

The undertaking couples remediation with measures intended to prevent similar problems from recurring. Among the commitments listed by the FWO are:

• Complete the broader payroll review and rectify any further underpayments found.
• Introduce a steering committee, chaired by NAB’s Group Executive People and Culture, to plan and oversee implementation of future enterprise agreements.
• Have an independent auditor assess the new payroll platform, including preliminary and full compliance, and report findings to the FWO.
• Improve monitoring of employee complaints and potential non-compliance trends, and report those improvements to the regulator.
• Strengthen Board reporting, provide staff training and worker-voice channels, and share compliance lessons through industry initiatives.

The agreement also provides for wages owed to employees NAB cannot locate to be paid into the Commonwealth’s unclaimed monies account. Former employees who think they may be affected can check NAB’s communications and the FWO’s guidance, then contact the bank’s remediation team or the regulator for help.

What does the undertaking mean for affected workers?

For workers, the immediate question is whether they have been identified and whether their payment calculation is complete. The FWO says NAB is completing payments and that the remediation covers a period extending beyond ordinary statutory time limits. Workers should review any direct statement from NAB, keep relevant payslips and employment records, and ask for clarification if the calculation or payment status is unclear. A former employee who cannot be located may still have money held as unclaimed funds.

The separate $2 million contrition payment goes to the Commonwealth Consolidated Revenue Fund; it is not an additional individual back-payment. The FWO describes it as the largest contrition payment included in one of its enforceable undertakings. The wage, interest and superannuation figures relate to worker remediation, while the contrition payment is a distinct commitment.

What happens next?

The outcome now depends on completion and verification: NAB must finish its review, deliver the specified system and governance changes, and meet the undertaking’s audit and reporting obligations. The undertaking is designed to extend accountability beyond correcting past pay, particularly by requiring early planning and testing before a future enterprise agreement takes effect. Whether the reforms prevent future errors will depend on how effectively they work in practice and what the required audits and regulator oversight find.

Sources: Fair Work Ombudsman’s November 12, 2026 release; NAB’s undertaking announcement; and section 715 of the Fair Work Act 2009.

Frequently asked questions

Is an enforceable undertaking the same as a court fine?

No. It is a written undertaking accepted by the FWO that sets out commitments relating to contraventions. NAB’s separate $2 million contrition payment is paid to the Commonwealth.

How many NAB workers were affected?

The FWO says 65,999 current and former employees were affected by underpayments spanning more than a decade.

What should a former NAB employee do if they think they are owed money?

Check communications from NAB and contact its Payroll Remediation team or the Fair Work Ombudsman. If NAB cannot locate a worker, the undertaking provides for amounts owed to go to the Commonwealth’s unclaimed monies account.