New wage theft laws under the Fair Work Act 2009 (Cth) commenced on 1 January 2025.
Employers that fail to pay an amount payable under a modern award, enterprise agreement, or order made under the FW Act for an employee, can commit a wage theft offence.
Where the non-payment was intentional, the employer may be prosecuted for committing a criminal offence.
The employer may still be subject to a civil penalty where the non-payment was not intentional.
Code for compliance
The Fair Work Ombudsman’s Voluntary Small Business Wage Compliance Code guides employers in avoiding criminal liability for wage theft.
A small business employer (i.e. with less than 15 employees) that complies with the Code will not be referred for prosecution.
The Code is also a helpful guide for all employers in avoiding criminal liability for wage theft, as it explains steps that will help an employer avoid criminal prosecution for a non-payment.
Employers need to understand the implications of the new laws, and the steps recommended by the Code for avoiding liability under them. We will provide some more information about these in upcoming bulletins.
At WorkLegal our experienced team can answer your questions and put you on the right track. A range of fixed-price Initial Consultations will suit most people’s needs in quickly learning what their options are.
Some more information is available here or you can book an initial no-obligation chat online to review an employment contract or contractor agreement.