Wage theft becomes a criminal offence in Victoria from this month.
Employers who deliberately underpay or don’t pay their workers now face fines of up to almost $1 million for companies and up to 10 years’ jail or up to $200,000 for individuals.
Victoria’s Treasurer Tim Pallas said that these laws are set to “target employers who deliberately short-change and exploit their employees for financial advantage, which is unfair for both workers and businesses.”
He said, “Wage theft is an insidious crime that often takes advantage of vulnerable employees who may be too afraid to speak up – these laws send a strong message that Victoria takes the exploitation of workers seriously and that wage theft is intolerable and will be punished.”
The Wage Theft Act 2020 takes effect today, making it a crime for an employer in Victoria to deliberately underpay employees or dishonestly withhold wages, superannuation or other employee entitlements.
The new laws deliver on the Andrews Labor Government’s commitment to establish criminal offences targeting employers who commit wage theft.
The law also makes it a crime to falsify, or avoid keeping, employee entitlement records to gain a financial advantage.
The legislation covers dishonest conduct by employers who are seeking to deliberately avoid their lawful responsibilities.
READ MORE: Underpayment is really common, some paid $12 an hour, reveals Greek hospitality worker
There were a number of high-profile wage theft incidents in 2020 which saw George Calombaris’ empire, MAdE Establishment Group, crumble after it was found that it backpaid $7.8 mllion in wages and superannuation, while Stavros and Anastasia Petroulias, who run Barry Cafe in Northcote ordered to pay fines woth $232,545. Investigations by Neos Kosmos at the time showed that there were problems rife within the hospitality industry with many employees telling our newspaper that the situation was far greater than the cases brought to light, and the United Workers Union pointing to an “endemic problem”.
Since 2015, operators of 7-Eleven stores, Woolworths, the ABC, Bunnings and The Red Cross have been among employers facing underpayment issues.
The act hopes to put an end to the situation which shortchanges employees, especially those on visas.
Employers who make honest mistakes or who exercise due diligence in paying wages and employee entitlements are not guilty of wage theft offences.
A new statutory body, Wage Inspectorate Victoria, also begins operations today and has the power to investigate and prosecute wage theft offences.
READ MORE: Former waiter starts petition to get Calombaris off MasterChef following wage theft scandal
Led by newly appointed Commissioner Robert Hortle, Wage Inspectorate Victoria will also promote and enforce existing Victorian laws covering child employment, long service leave, and contractors in transport and forestry.
Allegations of wage theft can be reported to Wage Inspectorate Victoria via its website at wageinspectorate.vic.gov.au, which also contains comprehensive frequently asked questions, fact sheets, and information for employers about their responsibilities.
