New wage theft laws will come into effect as of 1 July 2021 in Victoria. These new laws will now make it a criminal offence for an employer to deliberately underpay their employees or dishonestly withhold employee entitlements.

Wage theft offences involve deliberate and dishonest conduct when the entitlements under an employment agreement or award are not paid by an employer.  This includes the failure to make compulsory superannuation payments.

Penalties for wage theft offenses include significant financial penalties up to $198,264 and up to 10 years imprisonment for individuals and a fine of up to $991,320 for companies.

Honest mistakes made by employers who exercise due diligence in paying wages and entitlement are not considered wage theft.

For more information on the Victoria Wages Theft Laws visit the Victoria Government Website.

For more information on pay rates, Awards and Agreements visit the FairWork Website or contact them on 13 13 94 or seek advice from a human resources/workplace relations specialist.

The information provided in this article is general in nature.