To: iKeep Clients
From 1 January 2025, Australian businesses will face significant workplace law reforms, with intentional underpayment of wages or entitlements becoming a criminal offence.
This change aims to promote fair treatment for employees while offering protections for businesses that take proactive steps to ensure wage compliance.
What is intentional underpayment?
Intentional underpayment occurs when an employer knowingly and deliberately fails to pay employees their correct wages or entitlements (such as leave or superannuation) by the required deadline. Under the new laws, such actions could lead to criminal charges, with penalties including hefty fines, imprisonment, or both.
It’s important to note that this reform does not penalize honest mistakes.
How can businesses stay protected?
The Fair Work Ombudsman has introduced the Voluntary Small Business Compliance Code (the Code) to support businesses in maintaining compliance. The Code provides a clear, step-by-step guide to review wage practices, rectify errors, and avoid criminal repercussions. Small businesses that unintentionally underpay employees can access the protections offered by the Code.
Need assistance?
If you have any questions or need support regarding these changes, please don’t hesitate to reach out to us.
Kind regards,
Your iKeep
