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ARTICLE · 25 JULY 2024

Wage compliance requires action and diligence

With new wage theft laws & higher penalties coming into play from 01/01/25, you need to adopt a safety approach to wage compliance.

AustraliaEmployment and HR

With new wage theft laws and higher penalties coming into play from 1 January 2025, businesses need to adopt a safety approach to wage compliance.

The obligation of due diligence under safety laws is well known to business and its leaders. At its core, the duty of due diligence requires officers to understand the applicable legal obligations, assess compliance with those obligations, ensure resources exist for compliance and routinely audit for compliance.

As a recent decision of the Federal Circuit and Family Court of Australia illustrates that the absence of such a system will result in significant penalties for underpayment.

Business needs to assess its existing wage compliance record and its capabilities and resources for compliance. Businesses should develop an audit programme that involves targeted routine audits to ensure ongoing compliance.

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