Letter of demand for unpaid overtime: how to claim what your employer owes you

If your employer has not paid you for overtime, you can ask for the money in writing, and a letter of demand is the usual first formal step. Overtime is work outside the ordinary hours in your award, agreement or contract, and it is usually paid at a higher rate. If the letter does not settle it, the Fair Work Ombudsman says you can make a small claim in court for underpayments up to $100,000 (as at November 2026), within 6 years.

Claim Done’s Unpaid Wages Demand is a letter of demand to your employer, drafted from your answers for a flat A$49. You download the finished letter and send it yourself.

When unpaid overtime is owed

The Fair Work Ombudsman says the details about when overtime applies are different under each award and registered agreement. Some awards and agreements also let you take paid time off instead of overtime pay, often called time off in lieu.

The Ombudsman’s page on when overtime applies says overtime can include work done:

• beyond your maximum daily or weekly ordinary hours
• outside a part-time employee’s agreed number of hours
• outside the spread of ordinary hours (the times of day ordinary hours can be worked).

So first find your award, agreement or contract and read what it says about ordinary hours and overtime rates.

Extra hours and the 38-hour week

Under the National Employment Standards, an employer must not request or require a full-time employee to work more than 38 hours a week (unless the award or agreement sets different hours), unless the additional hours are reasonable. The maximum weekly hours fact sheet says you may refuse hours that are unreasonable. Whether hours are reasonable depends on things like your personal circumstances, the notice you were given, your role, and whether you get overtime pay or a level of pay that reflects an expectation of extra hours.

That fact sheet also says that employees who are not covered by any award or agreement are not entitled under the Fair Work Act to a higher rate for overtime. For them, the question is what the contract says and whether the pay still meets the minimum.

Salaried employees and overtime under an award

Being on a salary does not by itself mean overtime is never owed. The Ombudsman’s page on annualised wages and salaries explains two set-ups:

• An annualised wage under an award. It can cover overtime, but generally must not be less than what the award would have paid for the work you did in the year. The award may cap how many overtime hours it covers before extra pay is due. It is usually reviewed every 12 months or when employment ends, and any shortfall must be paid.
• A salary in your contract. It may be set up to cover award entitlements, including overtime. This is called a contractual offsetting arrangement.

If no award or agreement applies, your salary must still provide at least the National Minimum Wage and the National Employment Standards. If you are paid a salary, your pay slips must show your annual rate of pay.

Who this applies to, by State

The Ombudsman’s page on who the Fair Work system covers lists the main exceptions:

If you are in a state system, the rules in this guide may not apply to you. Check with your state body. In Western Australia, the Ombudsman points to the Department of Local Government, Industry Regulation and Safety.

Gather your proof first

Your claim is only as strong as your record of hours. The Ombudsman’s record-keeping rules say employers must record overtime hours where a penalty rate or loading is payable, including when the overtime started and finished. They must keep time and wages records for 7 years. If you ask to see your records, the employer must make them available, even after you have left.

Collect:

• your pay slips, which must be given to you within 1 working day of pay day under the pay slip rules
• rosters, timesheets, sign-in logs, emails or messages asking you to stay back
• your contract and the name of your award or agreement
• your own diary of start and finish times.

The Ombudsman’s page My pay doesn’t seem right recommends keeping your own record of hours, for example in a diary or with its Record My Hours app. It also suggests raising the problem with your employer first, then sending a follow-up email that sums up what was discussed, and giving them time to respond, for example one week.

What your letter must say

The Ombudsman’s page about the small claims court says a formal letter should set out what the dispute is about and what entitlements are owed, and give notice that a small claim will be made if it is not resolved by a set date. In practice, that means:

1. Your name, role, start date and employment type (full-time, part-time or casual).
2. The award, agreement or contract term you rely on, and what it says about ordinary hours and overtime.
3. The dates and hours of the overtime you worked.
4. What you were paid and what you should have been paid, with the difference worked out for each period.
5. The total amount you are asking for.
6. A clear deadline to pay.
7. What you may do if they do not pay: a small claim in court.

The structure of the letter

Claim Done’s Unpaid Wages Demand follows this order:

• RE line: a formal demand for unpaid overtime (or wages, leave or super, as the case is).
• Employment details: your start date, your role, and your award or agreement if you know it.
• Underpayment details: the dates, hours and amounts.
• Legal basis: the Fair Work Act 2009, the National Employment Standards and the relevant modern award.
• The offence: that from 1 January 2025 intentional underpayment can be a criminal offence, stated as a fact, not a threat.
• Demand: payment within 14 days.
• Consequences: a request for help to the Fair Work Ombudsman, and a small claims application in the Federal Circuit and Family Court of Australia or an eligible state or territory court. It never names a state civil or consumer tribunal.

For an employer in the Western Australian state system, the letter cites the state rules instead.

How to send it and what to keep

Send the letter to the business itself, using the email address or postal address you normally deal with, such as payroll or the owner. Keep a copy of the letter, proof it was sent, and every reply. Keep your pay slips and hours record with it.

If your employer ignores the letter

A letter gives your employer a final chance to fix the problem without court. If the deadline passes, the Ombudsman says you can:

• ask the Fair Work Ombudsman for help if your employer does not respond or does not agree with you
• make a small claim in the Federal Circuit and Family Court of Australia or the magistrates court in your State or Territory, for underpayments up to $100,000 (as at November 2026).

A small claim must be made within 6 years of the date of the contravention. Usually both sides represent themselves, and a lawyer needs the court’s permission to appear. You may also be able to claim interest in some circumstances.

Mistakes to avoid

• Guessing the amount. Work it out from your award and your hours record, period by period.
• Assuming a salary covers everything. Check whether an award applies and whether the salary still meets what the award would have paid.
• Waiting too long. The 6-year limit counts from the date of the contravention, so older underpayments can fall outside it.
• Threatening prosecution. The Ombudsman says intentional underpayment can be a criminal offence from 1 January 2025, but not honest mistakes, and only the Commonwealth Director of Public Prosecutions and the Australian Federal Police can start a criminal case. The Unpaid Wages Demand mentions the offence as a fact, not a threat, and asks for the money.

Ready to put your overtime claim in writing? Answer a few plain questions and get your letter of demand drafted for a flat A$49, ready to download, check and send.