Employment · Australia

Legality of Recruitment Costs and Background Checks Under Section 325

Whether you can be made to pay for your own background check depends on one thing: are you being hired, or are you already employed and just being audited?

Statutory Protections Under Section 325

Employers frequently require candidates or employees to hold background clearances — a National Police Check, or a Working with Children Check (WWCC). Whether you can be forced to pay for these, or have the cost deducted from your wages, is strictly regulated by Section 325 of the Fair Work Act 2009.

The core statutory rule (Section 325(1)): an employer must not directly or indirectly require you to pay or forfeit money if the requirement is unreasonable in the circumstances, and the payment is directly or indirectly for the employer's benefit.

Pre-Employment vs. Ongoing Employment Clearances

This distinction is the key to the whole issue:

What Makes a Wage Deduction Lawful (Section 324)

Separately, for any deduction from your wages to be lawful under Section 324, it must:

Deductions or fee requirements that push your effective pay rate below the applicable Award rate, or that exist purely to cover the employer's own operational expenses, are void and recoverable as unpaid wages — regardless of whether you initially agreed to them.

What This Means for You

If you're already employed and asked to personally pay for a new background check that exists solely for the employer's internal audit purposes, that's worth challenging — it's a materially different situation from being asked to hold a valid clearance before you were hired in the first place. Check whether any deduction from your pay for this purpose was properly authorized in writing and specifies an exact amount, as required under Section 324.

Use our Background Check Preparation Checklist to work through whether a specific request is reasonable, and generate a formal dispute letter if an unlawful deduction has already been taken.

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