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Employers are being warned not to "shy away" from complicated clauses in employees' contracts, as these can be critical to defending underpayment claims.

A recent full Federal Court decision reinforced the benefits of contractual set offs, in upholding an employer's appeal against a $1.34 million underpayment ruling, two lawyers say.

The case involved 48 former Macquarie Bank financial advisors who claimed they had been denied their full entitlements. The Federal Circuit Court awarded the employees $1.34 million in compensation, but the employer appealed, relying on a set-off clause in the employees' contracts...