Wage Theft (Criminal Offence)
A new federal criminal offence for intentional underpayment of wages or certain statutory entitlements by employers.
Definition
Effective from 1 January 2025, the Act introduces a new federal criminal offence for intentional wage underpayment. This applies to employers (both corporate entities and individuals) who deliberately fail to pay wages or certain statutory entitlements under the Fair Work Act 2009 (Cth) or a fair work instrument. Penalties can include substantial fines for corporations (up to $8.25 million or triple the underpayment amount) and imprisonment for individuals (up to 10 years) along with significant fines. This criminalization aims to deter deliberate exploitation and ensure severe consequences for egregious breaches of worker entitlements.