From 1 January 2025, intentional underpayment of wages or entitlements can be a criminal offence.
Fair Work Australia can investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.
Fair Work Australia can’t refer a small business employer’s conduct for possible criminal prosecution if they are satisfied that the employer has complied with the Voluntary Small Business Wage Compliance Code in relation to an underpayment. The supporting guide can be referenced for practical advice and tools, including a checklist, examples and best practice tips, to assist with correct wage payment and compliance with the Code. A small business employer is an employer with fewer than 15 employees at a particular time.
To download the Fair Work Australia Voluntary Small Business Wage Compliance Code and supporting guide, click here.