New criminal offences for intentional wage underpayment

New Commonwealth laws targeting wage theft took effect on 1 January 2025. Under these laws, employers who intentionally underpay wages and other entitlements may face criminal charges. However, honest mistakes in payment calculations will not be treated as criminal offences.

The Fair Work Ombudsman (FWO) now has the power to:

• investigate suspected criminal underpayment offences
• refer suitable matters to the Commonwealth Director of Public Prosecutions or the Australian Federal Police for consideration and possible criminal prosecution.

To help small businesses comply, the FWO has introduced the Voluntary Small Business Wage Compliance code, along with practical guidance for employers.

More information

For further information on the new laws and compliance resources, visit www.fairwork.gov.au/criminal.