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ARTICLE · 15 APRIL 2020

Wage theft – can you avoid it?

What is 'wage theft' and how can you prevent it?

AustraliaEmployment and HR

A hot topic at the moment is "wage theft". From Wesfarmers and Target to Woolworths, 7-Eleven, the Commonwealth Bank, Sunglass Hut, Qantas, the ABC and probably the most well-known, George Calombaris's MAdE Establishment. The concept of 'wage theft' has been dominant in the headlines for years, so, what is 'wage theft' and how can you prevent it?

Wage theft is the unlawful underpayment of remuneration to employees. This may occur in a number of ways, and it does not need to be deliberate. It may include underpaying ordinary wages, underpaying penalty rates or overtime, failing to pay or underpaying superannuation, termination payments, other commissions earned or entitlements such as leave. It may also include unauthorised deductions from an employee's pay or demanding employees payback money earned for promises such as immigration and visa support.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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