The draft laws,to be introduced to the parliament by Employment Minister Tony Burke on Monday,will create a new federal offence for wage theft which targets deliberate wrongdoing by businesses,and not those who make honest mistakes,or self-report and take reasonable steps to repay the correct wages.
The offence is tied to harsh penalties with a maximum fine of $7.8 million. However,in cases where the underpayment exceeds that amount employers will face fines of three times the value of the underpayment – upwards from $23.4 million.
Burke said dozens of highly publicised underpayment scandals had made clear that the current rules and penalties were not protecting workers.
“If a worker steals from the till,it’s a criminal offence – as it should be. But in many parts of the country if an employer steals from a worker’s pay packet,it’s not,” Burke said.
“It’s time to end this double standard once and for all.”
The proposed laws would provide a uniform national framework whereas wage underpayment offences currently only exist in Victoria and Queensland.