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In January 2025, Australia introduced ground breaking legislation to combat wage theft, significantly altering the legal landscape for employers. This article will detail the new wage theft legislation and your business. This new law criminalises the intentional underpayment of wages or entitlements, aiming to protect employees from exploitation and ensure fair compensation for their work. The legislation applies to all employers, including individuals and companies, and covers various employee entitlements under the Fair Work Act 2009, such as wages, paid leave, and superannuation.

Key Aspects of the Wage Theft Legislation

The new wage theft laws impose severe penalties for intentional underpayment, including monetary fines and imprisonment. The Fair Work Ombudsman (FWO) is empowered to investigate suspected cases of wage theft and refer them to the Commonwealth Director of Public Prosecutions or the Australian Federal Police for potential criminal prosecution. This legislation underscores the government’s commitment to closing loopholes that previously allowed some employers to evade their responsibilities.

How Inform Business Accounting Can Help Ensure Compliance

For businesses, particularly small and medium-sized enterprises (SMEs), navigating these new legal requirements can be challenging. Inform Business Accounting offers a range of services designed to help businesses comply with the new wage theft legislation and avoid the severe consequences of non-compliance.

Comprehensive Compliance Audits

Inform Business Accounting conducts thorough compliance audits to ensure that all aspects of a company’s payroll and employee compensation systems align with the new legislation. These audits can identify discrepancies or areas of non-compliance, allowing businesses to rectify issues before they escalate into legal problems.

Policy and Process Development

Developing robust policies and processes is essential for compliance. Inform Business Accounting assists businesses in creating and implementing policies that align with the new wage theft laws. This includes drafting clear guidelines for payroll processing, employee entitlements and record-keeping practices.

Training and Education

Keeping staff informed about the latest legal requirements is crucial. Inform Business Accounting offers training sessions and educational resources to help business owners and their employees understand the new legislation and their obligations under it. This proactive approach can prevent unintentional breaches of the law.

Payroll Management Services

Accurate payroll management is at the heart of compliance with wage theft legislation. Inform Business Accounting provides comprehensive payroll services, ensuring that employees are paid correctly and on time. Our expertise in payroll systems helps businesses avoid common pitfalls that lead to underpayment issues.

Voluntary Compliance Programs

The new legislation includes provisions for voluntary compliance programs, such as the Voluntary Small Business Wage Compliance Code. Inform Business Accounting guides businesses through the process of enrolling in these programs, which can offer protection against criminal prosecution for wage theft.

Ongoing Support and Monitoring

Compliance is an ongoing process. Inform Business Accounting offers continuous support and monitoring services to ensure that businesses remain compliant with the wage theft legislation over time. This includes regular reviews of payroll systems, updates on legislative changes, and assistance with any compliance issues that arise.

Conclusion

The new wage theft legislation introduced in January 2025 represents a significant step towards protecting employees’ rights in Australia. For businesses, compliance with these laws is not only a legal obligation but also a critical component of maintaining a fair and ethical workplace. Inform Business Accounting provides the expertise and support needed to navigate these changes, helping businesses implement effective systems, processes, and policies that ensure compliance and protect against the severe penalties associated with wage theft.

Would you like to know more?

For Expert Guidance for Your Business – Contact us at, enquiries@informba.com or call 03 9399 3769 for professional advice on business advisory, consulting, tax and accounting. Or alternatively, complete the contact form at the link below:

https://informba.com/contact-us/

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