Starting 1 January 2025, the intentional underpayment of wages or entitlements will become a criminal offence in Australia. This significant legal change underscores the importance of compliance for employers, particularly those managing small businesses.
What These Changes Mean
Under the new laws, intentional underpayment can lead to criminal prosecution. If convicted, individuals may face fines, imprisonment, or both. This move aims to deter wage theft and ensure fair treatment for all employees.
Protections for Small Businesses
Small businesses have safeguards to avoid criminal charges through the Voluntary Small Business Wage Compliance Code (the Code). Employers who adhere to this Code when addressing underpayment issues cannot be referred for criminal prosecution. To help businesses navigate these requirements, a comprehensive guide accompanies the Code, offering practical advice and steps for compliance. Both resources are now available for download online.
STEPS TO TAKE TODAY
Employers should:
- Familiarise themselves with the new criminal underpayment laws.
- Download and implement the Voluntary Small Business Wage Compliance Code.
- Stay updated on upcoming changes, such as revised entry-level classifications in awards and the Aged Care Work Value Case adjustments.
Proactively preparing for these changes can safeguard your business and uphold your employees’ rights. Visit the Fair Work Ombudsman website to learn more and access essential resources.