On 14 September 2020 ‘Wage Theft’ was made a criminal offence in Queensland, exposing employers to liability to criminal penalties including imprisonment for up to 10 years or 14 years in the event of fraud.
This follows high profile ‘wage theft’ cases in recent years, including George Colambaris’ Made Establishment, Woolworths and 7Eleven. It also follows a formal Inquiry and subsequent report by the Qld Government Department of Education Employment and Small Business Committee titled “A fair day’s pay for a fair day’s work? Exposing the true cost of wage theft in Queensland” which made recommendations including the criminalisation of this offence.
For employees, this creates a deterrent for employers who may otherwise intentionally fail to pay employees their full entitlements.
For employers, this is a reminder of the importance of understanding the entitlements owed to employees and ensuring wages are correctly paid to their staff.
It is also clear that the Directors of a company cannot hide behind the corporate structure, or their payroll staff and are certainly accountable for any failures to pay workers their entitlements.
The Queensland Police Service (QPS) have been given jurisdiction to receive complaints and investigate claims of wage theft.
In a constantly evolving and complex industrial system, it is important for audits of the payroll system, by independent professionals, to ensure failures are not occurring. If they have occurred, they must be rectified immediately.
Employers would be wise to obtain legal advice about their obligations.
Further, any employment agreement that attempts to obtain the worker’s agreement to underpayment will not be enforced by the court and will NOT protect the employer from criminal liability OR from liability to repay the underpayment claimed. Legal advice is recommended to assist with drafting of employment agreements.
