Wage theft legislation passed

19 June 2020

Victoria is set to introduce laws establishing criminal penalties for employers – including up to 10 years’ jail – who are found to have dishonestly withheld wages, superannuation and other employee entitlements. Additionally, offences will capture employers who falsify employee entitlement records and fail to keep employment records.

While the Chamber supports the government taking action to improve Australia's IR system, it questions certain aspects of the approach including the duplication of state and federal statutory authorities to investigate and prosecute underpayment and record-keeping breaches.

The move will make Victoria the first state in Australia to pass laws establishing criminal penalties for employers. Those found guilty will face:

• Fines of up to $198,264 (individuals)
• Fines of up to $991,320 (companies)
• 10 years’ jail.

The Wage Inspectorate of Victoria will be established as the new statutory authority with powers to investigate and prosecute wage theft offences, with the Victorian Government maintaining the aim is not to vilify employers who make honest mistakes.

The new laws do not come into effect until mid-2021 to give businesses time to prepare, VACC members are encouraged to contact the VACC Industrial Relations Department if they require any support or advice on this matter. Read related IR Bulletin: Wage theft legislation passed through Victorian Parliament 

VACC Industrial Relations Department
P: 03 9829 1123
F: 03 9866 1168
E: ir@vacc.com.au