Canberra, Jan 1 (NationPress) The recent legislation in Australia, which took effect on Wednesday, has criminalized intentional wage theft, imposing potential prison sentences of up to 10 years for dishonest business executives along with significant fines.
High-profile companies in Australia, including Woolworths, Qantas, and 7-Eleven, have faced scrutiny over underpayment issues. Previously, company directors could only be subjected to civil law investigations, lacking the risk of incarceration, as reported by the Australian Broadcasting Corporation (ABC).
According to the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, the Fair Work Ombudsman now possesses enhanced authority to pursue dishonest employers, with penalties reaching up to 10 years in prison and fines close to 7.83 million Australian dollars (approximately 4.87 million US dollars) for offending corporations.
This new legislation targets employers who purposely engage in practices that lead to the underpayment of employees. However, it explicitly excludes genuine errors or miscalculations from being classified as wage theft, as specified in the Act.
Establishing the intent of employers will be crucial in these wage theft cases, which could pose challenges, given that the Fair Work has not previously been required to demonstrate intent under its existing civil authority, according to employment lawyer Daniel Victory, as cited by the Xinhua news agency.
The introduction of these laws is expected to complicate operations for businesses, particularly small businesses, as noted by David Alexander, the chief of policy and advocacy at the Australian Chamber of Commerce and Industry.
In response, the Department of Employment and Workplace Relations mentioned last month that the newly implemented Voluntary Small Business Wage Compliance Code offers employers a pathway to mitigate the risk of criminal charges related to wage theft.
Additionally, the Fair Work Ombudsman has developed guidance materials detailing steps employers can adopt to ensure accurate compensation for their staff, according to the department.
