The new laws change the Fair Work Act, including creating a criminal offence for intentional underpayments.
Fair Work Ombudsman Anna Booth said: “There can be significant penalties where the laws are not followed – including jail time for the new criminal offence”. Most changes started on 15 December 2023.
Criminalising intentional wage underpayments
Starting 1 January 2025, intentional underpayments of wages by employers will be a criminal offence.
Employers may commit an offence if they owe money to an employee under the Fair Work Act or an industrial instrument (like an award or an enterprise agreement), and intentionally engage in conduct that fails to pay on or before the money is due. This includes failure to pay superannuation.
Companies prosecuted face penalties three times the amount of the underpayment if a court can determine it, or $7.825 million, whichever is greater. Individuals can be imprisoned for up to 10 years and fined three times the amount of the underpayment.
“Employers should know – these laws don’t apply to those who unintentionally underpay their employees or pay the wrong amount by mistake,” Ms Booth said.
Equal pay for labour-hire workers
From 15 December 2023, employees, unions and host employers can apply to the Fair Work Commission for a regulated labour-hire arrangement order. When such an order is in effect, employers will be required to pay labour-hire employees the same as employees employed directly by the host employer.
Several exclusions may also apply, for example, to host employers who are small business employers. The FWC can hear disputes.
New discrimination protections
From 15 December 2023, employers cannot discriminate by taking adverse action against employees because they have been subjected to family and domestic violence.
All employers must have a family and domestic violence leave policy. Talk to John about the appropriate policy for your business.
John Morrissey can help employers in Wollongong and the Illawarra with what award covers the workplace, and employees should be classified.
All employers in Wollongong and the Illawarra who provide service to NDIS recipients should get john to carry out a workplace review to ensure that your employees are being paid correctly and all allowance under the Schads award are being paid.
Ring John on 0407 069 507.
