Employers Beware: Proposed Legislation to Criminalise Wage Theft
The criminalisation of wage theft is imminent as changes to the Fair Work Act are set to outlaw underpayment of employees wages, increasing the likelihood of criminal prosecution for underpayment of employees.
The proposed legislation is based on wage theft laws already introduced in Victoria. Queensland and WA also outlaw wage theft and other states are considering it, with the Labor Opposition in NSW saying they will make it illegal.
Importantly, in the past couple of weeks the Fair Work Ombudsman has recovered $404,721 in wages for 623 workers in Brisbane after conducting investigations in the city’s food precincts. FWO investigators visited 77 businesses across multiple suburbs including the CBD, South Brisbane, Fortitude Valley and Sunnybank, finding 75 per cent of businesses had breached workplace laws.
The investigations were unannounced with the FWO simply arriving on the door-step of the businesses seeking to examine the time and wages records.
What should employers do?
With underpayment of wages now likely to be a criminal offence, employers should ensure that all of payroll is complaint with the Awards and the Fair Work Act, and ensure that all employment contract are up-to-date and compliant.
It is important that employers undertake an independent payroll audit to ensure compliance. If you would like a payroll audit to be undertaken, please Contact Us. It may be a small price to pay to avoid fines and possible criminal charges.
If the FWO seeks to undertake an investigation of your time and wages records, please call us for advice as to how to handle such a circumstance.
Greg Arnold – Director & Principal Consultant
Disclaimer: This article provides a summary only of the subject matter without the assumption of a duty of care by Effective Workplace Solutions. No person should rely on the contents as a substitute for legal of other professional advice.