Wage Theft Laws Have Changed in Australia: What Businesses Need to Know
Australia has introduced tougher laws to combat wage theft, and they’re a big wake-up call for employers. These changes are designed to protect workers and hold businesses accountable, but they also have serious consequences for those who fail to comply. Here’s what you need to know—and how to stay ahead.
Wage Theft Is Now a Criminal Offense
The most significant change? Wage theft is now considered a crime under the Fair Work Act. Employers who intentionally withhold payments—whether it’s wages, superannuation, or entitlements under industrial agreements—could face criminal charges.
This isn’t about accidental errors. It’s about deliberate underpayment, making it clear that exploiting workers won’t be tolerated.
Penalties Are Steep
The consequences for wage theft are severe:
- Individuals: Up to $1.65 million in fines or three times the underpayment, whichever is greater. Those found guilty could also face up to 10 years in jail.
- Corporations: Fines of up to $8.25 million or three times the underpayment.
The message is simple: compliance isn’t optional, and cutting corners comes with heavy costs.
Honest Mistakes Are Exempt
Mistakes happen, and thankfully, the law recognizes that. Payroll errors, unintentional underpayments, or admin slip-ups won’t result in criminal charges. The focus is solely on conduct that’s deliberate and intentional.
Staying Compliant: It’s More Than Just “Set and Forget”
To avoid trouble, businesses need to keep their systems and policies in check.
From the Fair Work Ombudsman:
Our decision to refer matters for possible criminal prosecution will depend on whether we have enough evidence and whether it’s in the public interest. Our Compliance and Enforcement Policy Compliance and Enforcement Policy outlines the factors we will consider in more detail.
You can read more at the Fair Work Ombudsman page here.
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