With so many examples of employers failing to pay employees their full entitlements legal changes could see employers face time behind bars for wage left.
The Wage Theft Act 2020 (Vic) introduced new laws in July 2021, that imposed criminal penalties for Victorian employers who deliberately underpay employees or dishonestly withhold employee entitlements. Under the Act, employers that are individuals may be sentenced to up to 10 years in jail while companies may face fines of over $1 million.
In Queensland, similar wage theft laws and criminal penalties were also incorporated into meaning of "stealing" within the Queensland Criminal Code. This was introduced in September 2020 through the passing of the Criminal Code and Other Legislation (Wage Theft) Amendment Act 2020.
Prosecuting the Victorian cases is the Wage Inspectorate Victoria which since July 2021 has initiated 10 prosecutions, including against the NAB, CommSec and BankWest. No prosecutions have yet occurred in Queensland.
In a recent matter heard in the Magistrates Court of Victoria, the Inspectorate filed 94 criminal charges against a Macedon restaurant and its owner. These are the first criminal wage theft charges laid under the new Act and the first in any Australian jurisdiction.
The proceedings included a claim that the restaurant and its owner dishonestly withheld over $7,000 in wages, penalty rates and superannuation payments from four former young employees. The matter is currently listed for a mentions hearing on 21 February 2023.
Since August last year, the Inspectorate has been cracking down on employers' compliance in employee pay and entitlements, having successfully clawed back approximately $1 million in unpaid long service leave and helping over 15,000 workers and businesses since the Act's introduction.
Important message for employers
Whilst honest mistakes by employers will not be considered wage
theft, it is extremely important for employers to review their
systems, salaries, Awards and entitlements to ensure strict
compliance and promptly address any underpayments as soon as
practicable.
This may range from creating and maintaining proper pay and employee records (including allowances, annual leave and long service leave) to checking that employees are paid in accordance with the correct Award or Enterprise Agreement and their relevant provisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
