Criminalising wage underpayments

Fair Work has announced new criminal underpayment laws that took effect on January 1, 2025. Under these laws, employers who intentionally underpay workers will face criminal penalties, including potential imprisonment.

The laws target serious cases of underpayment, particularly where the conduct is deliberate and systemic. These cases will be treated as suitable for criminal prosecution, emphasizing the importance of employers complying with Fair Work standards. The aim is to deter deliberate wage theft and protect workers from exploitation. However, this does not include honest mistakes.

So, whether you’re a worker or employer, these changes are a big deal. Make sure you understand that deliberate wage theft is now a crime.

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Disclaimer

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.