AST Fair Work Criminal Underpayment


On Dec. 16, AST Fair Work summarized new laws re underpayment.


  • AST Fair Work issued update on criminal underpayment laws starting Jan. 1, 2025.
  • Follows AST GVT Dec. 2024 issued small business wage compliance code, #237359.
  • Overview of Updates
  • Reminded that intentional underpayment of employee wages or entitlements becomes offense, excluding honest mistakes; regulators can investigate suspected criminal underpayments, refer for prosecution; courts may impose fines and prison sentences.
  • Voluntary small business wage compliance code provides protection against criminal prosecution for compliant small businesses; those following code requirements and demonstrating no intent to underpay, will thus avoid criminal prosecution referral.
  • Guide includes tools, checklist, examples to ensure the correct employee payments.
  • Additional Changes
  • Increased max. penalties for underpayment contraventions by non-small businesses.
  • New entry-level classification definitions and minimum pay rates in selected awards.
  • Changes to classifications, minimum pay rates for some employees in aged care sector.
  • Effectiveness
  • Criminal underpayment provisions commence Jan. 1, 2025.

Regulators AST Fair Work
Entity Types CNSM; Corp
Reference PR, Gd, 12/16/2024
Functions Accounting; Complaints; Compliance; Exams; HR; Legal; Risk; Treasury
Countries Australia
Category
State
Products Corporate; Equity
Regions AP
Rule Type Final
Rule Date 12/16/2024
Effective Date 1/1/2025
Rule Id 237152
Linked to Rule :237359
Reg. Last Update 12/16/2024
Report Section International

Last substantive update on 12/18/2024