As of January 1, 2025, Australia has implemented stringent laws criminalizing the intentional underpayment of employees, commonly referred to as wage theft. These measures aim to strengthen worker protections and ensure fair compensation across all industries.
CRIMINAL OFFENSE: Deliberate underpayment of wages or entitlements is now a criminal act. This excludes genuine errors; only intentional misconduct is subject to criminal penalties.
Intentional underpayment occurs when an employer knowingly and intentionally fails to pay employees their due wages or entitlements (i.e. leave and superannuation). If convicted, employers could face substantial fines, imprisonment, or both
PROTECTION & COMPLIANCE MEASURERS: There are protections in place for businesses to avoid criminal prosecution. This includes the Voluntary Small Business Wage Compliance Code (Code) and cooperation agreements.
Non-compliance not only risks severe legal penalties but can also damage an organization’s reputation and employee trust.