The new criminal offence of wage theft, which commenced on 1 January 2025, targets deliberate underpayment practices by employers.
Key changes:
Intentional Conduct: Penalties apply if an employer intentionally engages in conduct that results in the underpayment of employee’s wages or entitlements.
Liability: Both companies and individuals, such as directors, managers, or payroll personnel, can be held criminally liable for wage theft.
Severe Penalties: The penalties for wage theft include fines of up to $8.25 million for corporations, and up to 10 years of imprisonment for individuals.
It is important to note that this offence is not intended to capture inadvertent errors or genuine mistakes.
https://www.victorianchamber.com.au/news/understanding-criminal-wage-theft-laws
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