Recent changes to Australian workplace laws have introduced strict new penalties around what is commonly referred to as “wage theft.” These laws now apply to all businesses, regardless of size or industry, and are focused on the intentional underpayment of wages and other entitlements owed to employees.

‍
What’s Changed?

‍
If a business is found to have deliberately underpaid an employee — whether in wages, superannuation, or other legal entitlements — the consequences are severe:

• For companies: Fines of up to three times the amount underpaid or $8.25 million, whichever is greater.
• For individuals: Fines of up to three times the underpayment or $1.65 million, plus the possibility of imprisonment.

‍
The Legal Standard

‍
These offences are criminal in nature, meaning that the standard of proof is beyond reasonable doubt. However, that doesn’t mean employers can afford to be complacent. If there’s evidence of deliberate underpayment, the legal and financial risks are significant — and real.

‍
What Should Businesses Do?

‍
It’s critical that businesses take immediate steps to ensure they’re fully compliant with all employee payment obligations. This includes:

• Reviewing payroll systems and processes regularly
• Conducting regular audits of employee entitlements
• Seeking legal or professional advice if there’s any uncertainty

‍
Compliance isn’t just about avoiding penalties — it’s about fostering trust and fairness in your workplace.

‍
Contact our Commercial & Corporate team at Mahons to have a confidential discussion regarding an issue you are facing in your business.

‍