03 Oct Australian Wage Theft Law
Wage theft occurs when your employer does not pay you the minimum amount of money or allowances and rights set out in the agreement or arbitration award under which you work. Wage theft offences involve intentional and dishonest behaviour. Honest mistakes made by employers who exercise due diligence in the payment of wages and claims are not considered wage theft. In payroll inspection, our role is under Victoria`s payroll laws: RESEARCH from UNSW and UTS shows that an overwhelming number of international students and backpackers in Australia are silently suffering from wage theft. If you are not paid properly at work, there are steps you can take. In March 2020, the Victorian Labour government introduced the Wage Theft Bill 2020 (“Bill”) with the aim of solving common underpayment problems affecting businesses and workers. The Bill established various offences and proposed the establishment of a Victorian State Wage Inspection Service to investigate and prosecute wage theft offences. An “employee`s right” means any amount or benefit owed by an employer to an employee, including wages or salaries, allowances, vacation entitlements, meal breaks or pensions in accordance with relevant laws, contracts and agreements (whichever is more generous). The specific salaries and rights to which you are entitled may depend on: Wage theft is the denial of wages or benefits legally due to an employee. This includes the deliberate underpayment of wages; deliberate denial of vacation interest rates and penalties; or the intentional failure to make the necessary pension contributions on behalf of the employee.
Wage theft in Australia is systemic, persistent and shameful, and workers are often too afraid to speak out for fear of repercussions, according to a scathing Senate investigative report calling for new legislation to protect workers. The report contains several recommendations on the protection of migrant workers, including the protection of whistleblowers and temporary visa holders who report exploitation or theft of wages. “Systemic wage theft is often a conscious decision by companies participating in a race to the bottom to drive down wages and increase profits,” the report says. In June 2020, the Victoria Parliament passed the Wage Theft Bill 2020, becoming the first Australian jurisdiction to criminalise wage theft in Australia. This bill imposes criminal penalties on employers who fail to pay all employee claims or falsify employee claim records, and targets employers who dishonestly withhold employees` wages and other claims. Senate inquiry calls for legislation to eradicate “systemic, persistent and shameful” wage theft www.oir.qld.gov.au/industrial-relations/wage-theft This can happen accidentally, but in many cases, wage theft is a deliberate act of your boss to steal money to which you are entitled and legally. RLC provides legal advice and representation to international students and other migrant workers to recover their unpaid wages. Below are some tips and information that can help you if you think you are underpaid at work. It is important to make sure you pay your employees the right salaries and employee rights and keep records of these payments. We can help you through: The 2018 Queensland Payroll Theft Survey found that about 1 in 5 workers were underpaid, which equates to about $1.2 billion in unpaid wages and more than $1 billion in pension rights.
In response to this request, the Queensland Penal Code was amended on 14 September 2020 to classify wage theft as a crime that can be prosecuted as a criminal offence of theft or fraud. Contract theft is prevalent in many industries, including retail, fast food, hair, beauty, and hospitality. An important recommendation is that the federal government amend the Fair Work Act to prohibit wage theft. “In addition, the ATO does not communicate with employees who are entitled to pension theft and, despite the introduction of single-contact pay, which theoretically makes it more visible, it does not have an accurate overview of the extent of the unpaid retirement pension.” Wage theft, exploitation and modern slavery are often flagged as isolated scandals – but for many new Australians, they are a reality of life. We have extensive experience in filing claims for salary theft with various tribunals and commissions. You can also ask a question or report suspected wage theft by calling us at 1800 287 287 According to the Report Silent Wage Theft, less than one in 10 migrant workers take steps to recover unpaid wages, even though most know they are underpaid. The committee – which included five Labour members, four from the coalition, Green Senator Mehreen Faruqi and independent Senator Rex Patrick – also looked at the unions` reduced power to enter workplaces and investigate wage theft. Every year, thousands of workers are victims of wage theft in Australia. As a result of the 2018 wage theft investigation, amendments were made to Queensland`s Criminal Code. These amendments to the Payroll Act stipulate that Queensland employers who intentionally fail to pay their employees will face criminal penalties of up to 10 years in prison.
Today, it`s more important than ever to ensure your business meets regulatory requirements. The Senate committee recommended increasing penalties for wage theft and making it illegal for bosses to pay employees below the minimum wage. It is important to remember that you have six years to claim your claim for unpaid wages from the date you were underpaid. If you would like to discuss your case with RLC, call us on 02 9698 7277. Anything you tell us will be treated confidentially. “The Wage Theft in Silence report confirms many of our observations from RLC`s free legal advice and representation for international students and backpackers. We often see workers receiving only $12 an hour. That`s almost half the minimum wage. “Said Ms. Bargon. Workers` rights and rights are protected by the State and Commonwealth Wage Theft Act.
Minimum rights include: The law would apply to the theft of all employee compensation, including loads, penalties, overtime, leave, allowances and pension coverage. Wage theft can occur in several ways. Employers who commit wage theft face a maximum prison sentence of 10 years for theft or a maximum prison sentence of 14 years for fraud. But not everything is dark for employers. Employers who exercise due diligence or who have made honest mistakes in the payment of employees` wages and rights are not liable under the proposed legislation. The committee said it had heard that the Australian Taxation Office (ATO) was taking “a permissive approach to pension theft”. The Senate committee noted that the current legal and regulatory framework for prosecuting wage and pension theft was inadequate. It is important that you respect the minimum wage rates set out in the award, the contract of enterprise or any other registered agreement. If these do not apply to your business, employees must receive at least the national minimum wage, which is set annually by the Fair Work Commission. For more information, see the Fair Work Board. If you are concerned about possible compliance issues or your company`s responsibilities, you should seek legal advice.
Legal Kitz`s employment specialists can help you implement best practices to ensure your business complies with all new or changed payroll laws and regulations. “Wage theft has been a major concern for the labour law practice and the practice of international students at the Redfern Legal Centre for many years,” said Sharmilla Bargon, labour lawyer at RLC. In any case, it is of the utmost importance that employers adopt practices that ensure that all employee claims are paid properly in order to reduce the risk of being subject to these criminal sanctions. “In our view, the majority report does not sufficiently take into account the positive impact of these measures and proposes a number of recommendations that are not sufficiently supported by evidence.” In 2020, PwC estimated that around 13% of Australia`s total workforce was affected by underpayment, with higher rates in some sectors, such as hospitality.