The new criminal offence for intentional wage theft will commence on 1 January 2025 following the registration of the Voluntary Small Business Wage Compliance Code.
On 16 December 2024, the Voluntary Small Business Wage Compliance Code Declaration 2024 (the Code) was lodged on the Federal Register of Legislation, enabling the commencement of the new wage theft criminal offence on 1 January 2025.
The Code provides small business employers with a clear pathway to avoid criminal prosecution for the new wage theft offence. The Code and its explanatory statement can be viewed online at the Federal Register of Legislation.
The new offence will apply to employers who intentionally engage in conduct that results in the underpayment of their employees. It will apply to employee entitlements under the Fair Work Act 2009 (FW Act) or a fair work instrument (such as a modern award or enterprise agreement), including superannuation in some circumstances.
The Fair Work Ombudsman has prepared guidance material on the steps employers can take to ensure they are paying staff correctly, and how the Code will apply to small business employers. This guidance is available at the Fair Work Ombudsman’s website.
Small business employers can also contact the Fair Work Ombudsman’s Employer Advisory Service for assistance to help make sure they are meeting their obligations under the FW Act. For information on making contact, visit the Employer Advisory Service.