NSW Labor leader Luke Foley warns of jail terms for employers who underpay workers

BRAD NORINGTON 
July 29, 2017
The Australian

Employers found underpaying workers in NSW could face jail terms under the next state Labor government, party leader Luke Foley has warned.

Addressing the NSW ALP’s annual conference in Sydney, Mr Foley pledged that Labor would pass laws to “criminalise” the deliberate underpayment of wages and conditions if it won the next state election.

The NSW Opposition leader announced the policy as part of a five-point plan to eliminate what he said was a worsening problem of exploitation in workplaces.

He said tougher penalties were needed to combat “wage theft” because some employers were escaping scrutiny as they systematically undercut legal minimum wage rates and entitlements 

Mr Foley singled out cafes, restaurants and retail outlets as typical workplaces for exploiting workers, claiming that “entire chains” were built on black market wages.

As examples of systematic exploitation, he said some staff worked 40 hours but were paid for 20, while others were “paid in pizza and soft drink”.

“Our laws won’t apply to genuine mistakes,” Mr Foley said. “Employers who do the right thing will benefit as they won’t be completing with undercutting cheats.

“But we’ll go after that minority whose business model is based on exploitation.”