Kicking off the year is new wage theft laws – the good news is they’re manageable.
From 1 January 2025, wage theft became a criminal offence under the Fair Work Act 2009 (Cth) (FW Act). While this might sound daunting, the good news is that with the right steps, you can avoid problems – and we’re here to guide you.
What does this mean for your business? Wage theft happens when an employer doesn’t pay an amount due under a modern award, enterprise agreement, or the NES. Intentional non-payment can lead to criminal prosecution, but if it’s unintentional, it’s only a civil issue. The key is taking action before it becomes a problem.
How to stay on track: The Fair Work Ombudsman (FWO) has released the Voluntary Small Business Wage Compliance Code. Following this Code can help all businesses – especially small ones with fewer than 15 employees – be prepared, address any underpayments and avoid prosecution. Here’s how:
- Be Proactive:
- Regularly review applicable awards, agreements, and FW Act provisions.
- Ensure employee roles, classifications, and pay rates are accurate.
- Seek advice from trusted sources (e.g., HR professionals, industrial lawyers, chambers of commerce).
- Stay informed about updates to pay and entitlements.
- Fix Issues Quickly:
- Repay any underpaid employees promptly.
- Audit your payroll processes to prevent future errors.
- Update your systems and practices to address deficiencies.
Don’t Ignore It – It’s Not That Scary! Mistakes happen, and underpayments are often unintentional. The key is to address them promptly. without assuming everything is fine. Taking proactive steps, like conducting a payroll audit or seeking expert advice, can significantly reduce your risk of penalties or prosecution.
Let Us Help You Get Compliant We’re offering a mini payroll audit to give you peace of mind that you’re complying with the Voluntary Small Business Wage Compliance Code. Here’s what’s included:
- Review of 5 employees across different awards, levels, and types.
- Examination of 2 pay cycles.
- Checks on pay rates, allowances, tax calculations, superannuation, leave accruals, and payslip requirements.
- A detailed report highlighting any issues found and actionable recommendations for correction.
Book your mini payroll audit now or contact us for more information.
