From January 1, 2025, the Albanese Government's wage theft laws make it a criminal offence for employers to deliberately underpay workers. For the first time, employers who intentionally steal wages can face up to 10 years imprisonment and fines of up to $7.85 million for companies, or three times the amount of underpayment, whichever is greater. Individual employers can face fines of up to $1.56 million.

The legislation addresses a significant issue affecting Australian workers, with Fair Work Ombudsman estimates indicating between $850 million to $1.55 billion in stolen wages each year. The laws target intentional underpayment while protecting employers who make honest mistakes. Small businesses are supported through a Voluntary Small Business Wage Compliance Code that provides a pathway to avoid criminal prosecution.

The reform includes increased civil penalties, with fines up to $4.95 million for larger companies engaged in serious contraventions. The Fair Work Ombudsman investigates potential criminal offences, with prosecutions handled by the Director of Public Prosecutions and Australian Federal Police. Employers who self-report and take reasonable steps to repay workers can access cooperation agreements to avoid criminal proceedings.

[1] https://ministers.dewr.gov.au/burke/albanese-labor-government-criminalise-wage-theft

[2] https://www.actu.org.au/media-release/new-year-new-powers-to-tackle-wage-theft-affecting-one-million-workers/#:~:text=Media%20Release%20%2D%20January%201%2C%202025,after%20a%20long%20union%20campaign.

[3] https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/criminalising-wage-underpayments-and-other-issues

[4] https://www.dewr.gov.au/closing-loopholes/announcements/new-wage-theft-criminal-offence-will-commence-1-january-2025#:~:text=The%20new%20wage%20theft%20criminal%20offence%20will%20commence%20on%201%20January%202025,-16%20December%202024&text=The%20new%20criminal%20offence%20for,Small%20Business%20Wage%20Compliance%20Code.