Victoria’s Wage Theft Laws come into effect

There has been a spate of underpayment or wage theft cases to make the media over the last few years. Some of the bigger cases include Woolworths’s underpayment of workers which was publicised in 2019 as well as the 7-Eleven wages scandal from 2015. The unpaid wages in both cases rose into the multi-millions of dollars. However, wage theft cases have continued to hit the news for organisations of all industries and sizes.   

With this known issue, the Victoria Government have introduced Wage Theft Laws which take effect on the 1st July 2021 as well as appointed Robert Hortle as the inaugural Commissioner of the Wage Inspectorate Victoria. 

The Wage Theft laws 

Victoria’s new wage theft laws (Wage Theft Act 2020) come into effect 1 July 2021. These laws are the first of their kind in Australia and make it a crime for Victorian employers to deliberately underpay employees or dishonestly withhold employee entitlements (such as wages and superannuation).   

The new laws also cover failures to keep employee entitlement records as well as falsifying any such records.  

What is the wage inspectorate? 

Wage Inspectorate Victoria will become an independent statutory authority. The inspectorate is tasked with monitoring and enforcing Victoria’s employment laws (including child employment, wage theft, and long service leave).  

The Inspectorate also has an educative function to inform and educate people about the new wage theft laws. 

The authority also investigates complaints it receives and can initiate legal action if necessary. Moreover, anyone can make an anonymous report to the Wage Inspectorate if they suspect someone is breaching a relevant law. 

What can you do? 

Even prior to the introduction of the new authority and laws, this area of compliance has been notoriously challenging and the consequences of getting it wrong have always been severe. Organisations should be thinking about their employment arrangements/payments and checking this area in their business to ensure compliance.  

For those keen for an experts support or who don’t know where to start, there is Certex’s iEngage program to provide clarity. From engaging to renumerating workers, the iEngage Assessment can help identify where a business’ risks may lie as well as indicate which areas require further support. 

Please contact us to arrange your assessment.