The Australian Government has legislated a significant legal change with the introduction of a new criminal offence for the intentional underpayment of wages. This new law aims to strengthen protections for workers and ensure that employers comply with their legal obligations to pay fair wages.
Under the new provisions, employers who intentionally underpay employees will face criminal penalties, including potential imprisonment. This legislation is part of a broader effort to ensure that workers are paid correctly for the work they perform.
The new offence applies to employers who intentionally underpay their employees, either by failing to pay the correct wage rates or by misclassifying workers to avoid paying the appropriate wages. It is designed to target businesses that deliberately engage in wage theft practices, as opposed to those who make honest mistakes or fail to comply due to administrative errors.
Key Points of the New Offence:
- Criminal Penalties: Employers found guilty of intentional wage underpayment may face criminal charges, including fines and imprisonment. This is a significant shift in how wage theft is treated under Australian law.
- Employer Responsibility: Employers will be held accountable for ensuring their employees receive correct pay in accordance with relevant awards, enterprise agreements, and the National Minimum Wage.
- Employee Protection: This aims to protect workers from exploitation and ensure that they are paid fairly for their work.
- Strengthening Enforcement: The legislation provides regulators with more power to investigate and take action against employers who intentionally underpay workers. This includes penalties for both the employer and individuals involved in wage theft practices.
- Greater Awareness: The new law raises awareness about wage theft and aims to deter employers from engaging in such practices. It also highlights the importance of accurate record-keeping and compliance with wage laws.
What Employers Need to Do:
Employers must ensure that they are complying with all wage laws and correctly classifying their employees. This includes:
- reviewing pay records, including workers compensation records,
- staying up-to-date with relevant awards and agreements, and
- ensuring that workers are paid in line with the legal requirements.
Regular audits of payroll practices can help businesses avoid unintentional underpayment and ensure compliance with the new criminal offence.
Article source: Fair Work Ombudsman
How we can support you:
The Mutual Benefits Program provides complementary support to all EML Group customers with a range of products, tools and services to support your workplace, including:
- Our Employer Training Program, in Quarter 2 we are hosting a training session on Meeting your Workers Compensation payment obligations: Ensuring workers are not underpaid following the legislative changes, facilitated by the Australian Payroll Association. This webinar is an invaluable opportunity to gain critical insights into a new legal landscape and ensure that your organisation is prepared.
- EMlearning: online weekly benefits and income support courses and Workers Compensation Essentials courses.
Learn more about Australia’s payroll environment and access compliance, governance and expertise of the payroll landscape by contacting Australian Payroll Association www.austpayroll.com.au.
At the EML Group, we’re here to support your journey toward a compliant workplace.
Contact us mutualbenefits@eml.com.au or visit www.eml.com.au/mutualbenefits