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ARTICLE · 14 DECEMBER 2022

Employers face time behind bars for wage theft

New laws impose criminal penalties for Victorian employers who deliberately underpay employees or dishonestly withhold entitlements.

AustraliaEmployment and HR

With so many examples of employers failing to pay employees their full entitlements legal changes could see employers face time behind bars for wage left.

The Wage Theft Act 2020 (Vic) introduced new laws in July 2021, that imposed criminal penalties for Victorian employers who deliberately underpay employees or dishonestly withhold employee entitlements. Under the Act, employers that are individuals may be sentenced to up to 10 years in jail while companies may face fines of over $1 million.

In Queensland, similar wage theft laws and criminal penalties were also incorporated into meaning of "stealing" within the Queensland Criminal Code. This was introduced in September 2020 through the passing of the Criminal Code and Other Legislation (Wage Theft) Amendment Act 2020.

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