Government considers broadening scope of wage theft penalties

Employment-and-workplace-relations-minister-Tony-Burke

In a discussion paper on Labor’s second wave of workplace policy changes, the department of Employment and Workplace Relations says it is “open to reviewing options to extend the bar to proving ancillary liability of officers of bodies corporate for the wage underpayments offence.” It says, “officers of bodies corporate may be held liable for an offence by the body corporate unless they can demonstrate they exercised due diligence to prevent the offence.”

This means that directors, executives, and human resource managers may be personally liable for not doing enough to prevent wage underpayments, unless they can demonstrate they exercised due diligence to prevent the offence.

To support governance of the process and ensure that employee wage obligations are met and brand reputation is protected, it may be helpful to audit the process. In the past, this has been a manual and costly process undertaken post-event, which may be too late for some organisations.

WageSafe is solving for this manual, retrospective, costly process allowing owners, managers, payroll, and HR teams to audit and understand issues in real time. Helping prevent wage underpayments from happening and allow organisations to demonstrate due diligence.

Apr 21, 2023

Share this entry

RELATED NEWS

  • In a recent development, Baker’s Delight, a well-known bakery franchise, is facing legal action initiated by the workplace watchdog for its alleged failure to prevent a franchisee from underpaying workers. The Fair Work Ombudsman has filed a case in the Federal Court, accusing Baker’s Delight of being aware of the franchisee’s underpayments but failing to […]

  • The Financial Review highlights the key issue of underpayments in a large retailer. Chemist Warehouse is facing a $10 million backpay bill after the Shop Distributive and Allied Employees Association (SDA) took legal action against four of its South Australian franchisees for allegedly underpaying nine staff while working higher duties. The union identifies that the […]