Dodgy Employers Could Face Jail Time Under the Government’s Wage Theft Crackdown

Reforms are set to be introduced to parliament today.

The federal government has planned a number of reforms that will mean employers who deliberately underpay staff will face hefty fines and potentially even jail time.

The government aims to put a stop to wage theft in an effort to help the Australian economy recover, following the effects of the coronavirus pandemic. They also want to ensure that staff are not being exploited for their hard work.

The new reforms are part of a massive overhaul of Australia’s industrial relations framework, which should be introduced into parliament today, so stay tuned.

So, what are dodgy employers up for?

Well, bosses who purposefully underpay workers or otherwise exploit their workers via their wages will face fines of up to $1.1 million and up to four years’ jail time.

If that isn’t enough to deter unfair workplace behaviour, the government has also stated that companies would face fines of up to $5.5 million and employers who are convicted of wage theft would be banned from managing companies for a minimum of five years.

The government also plans to tighten the civil penalties for employers. If these changes come into effect, civil penalties would rise by 50 per cent, with fines of up to $19,980 for individuals and $99,000 for corporations.

Employers would, however, be exempt from these penalties if they made inadvertent mistakes, miscalculations or one-off underpayments.

The reforms are a reaction to union concerns around casual workers and awards simplifications.

Part-time workers are also up for some changes in regards to their wages.

This new measure would see permanent part-time hospitality and retail employees lose overtime payments when they work more than their rostered hours.

Part-time workers will instead be able to negotiate extra hours at their normal pay rate so that staff who want to pick up extra hours can, even if they work at businesses that are reluctant to pay more per hour.

This change is less than ideal for part-time workers who already receive higher rates of pay for extra hours worked, but the reform hopes to give more staff members the option to work more hours.

Regardless of whether you’re up for a pay cut, pay rise or some more confidence in your workplace, it’s always best to check your pay slip every payday, and make sure you’re getting paid at the correct rate.

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