Employers face 10 years jail and fines up to $1 million under new crackdown on wage theft

Alex White, Herald Sun

March 18, 2020

HERALDSUN.COM.AU

Rogue employers caught underpaying their staff are facing a massive crackdown after the Victorian government introduced stringent new wage theft laws. Here’s what new penalties employers will face.

Rogue employers caught stealing wages from their staff will face up to 10 years behind bars and fines of up to $1 million under new wage theft laws in Victoria.

Under the plan, to be introduced into the Victorian parliament today, the state Government vows to stamp out the practice that has become rampant in businesses across Australia.

Attorney-General Jill Hennessy said dishonestly withholding wages, superannuation or other employee entitlements would no longer be tolerated.

“We have seen particularly over the last few years some egregious and unfair and outrageous examples where people have effectively been victims of wages theft,” Ms Hennessy said.

“This problem is systematic – that’s why our laws will apply beyond wages and include allowances, gratuities, superannuation and other accruals such as leave, as well as ensuring directors and officers are held to account.”

“Any business model that relies on underpaying workers is effectively a non-sustainable business model.”

Companies also found to be destroying or falsifying records to cover their tracks will also be hit with harsh penalties under the bill.

The move to crackdown on dodgy business owners comes after dozens of household brands and well-known companies have revealed underpaying wages including Coles, Woolworths, Dominos and 7-Eleven.

Former MasterChef judge George Calombaris was fined for underpaying staff $7.8 million in wages last year, which has led to the collapse of his restaurant empire.

Melbourne hospitality worker Chris Brecke is among the thousands of staff ripped off by an employer.

“As soon as the first paycheck came in I noticed it was below the award,” he said,

“I was getting unpaid on weekdays there was no loading for penalties.

“There was no loading for breaks and there were times that we were doing eight or nine hours with no breaks.”

Mr Brecke said he did not speak out for fear he would lose his job.

The legislation will also establish the Wage Inspectorate of Victoria to oversee the changes.

National Secretary of United Workers Union Tim Kennedy welcomed the new bill.

“Employers who steal from their staff need to be held accountable and our union welcomes today’s new proposed laws that will apply to wages, allowances, superannuation and other entitlements such as leave,” he said.

“This is a good win for all the union members who have campaigned against wage theft becoming the ‘new normal.”