Intentional Underpayment: New Criminal Laws

Deliberately underpaying workers has always been a serious issue, but now it’s a criminal offence in Australia. These laws are designed to crack down on wage theft and hold businesses and individuals accountable when they don’t pay employees what they’re owed.

Key Points You Should Know



What Counts as Wage Theft?

• Intentionally underpaying wages, superannuation, or entitlements now falls under criminal law.
• This covers things like unpaid overtime, incorrect award rates, and deliberate non-payment.

The Consequences Are Serious:

• Companies can face fines up to $7.8 million, and individuals responsible (like business owners or HR managers) could be fined up to $1.6 million or even face 10 years in prison.
• If the underpayment started before 1 January but continued into the new year, it’s still covered under these laws.

Who’s Responsible?

• Managers and directors can be personally liable if they knowingly allow underpayment. This means accountability goes beyond the business itself.

What Does This Mean for You?

If you’re running a business, it’s time to double-check your payroll processes. Mistakes, even unintentional ones, can be costly—and intentional underpayment can now land you in legal trouble.

Here are some steps to consider:

• Audit Your Payroll: Go through your records and make sure everyone is being paid the right amount, on time.
• Understand Your Obligations: Awards and agreements can be tricky, so make sure you’re clear on what applies to your staff.
• Get Advice if You Need It: If you’re not sure, it’s worth getting guidance to avoid any issues down the line.

This isn’t just about avoiding fines. It’s also about doing the right thing by your employees and maintaining trust.

Engineered Stone Ban: Protecting Workers from Silicosis

Silicosis has been a growing concern in industries like construction and manufacturing. To address this, the government has introduced a ban on imported engineered stone products, effective 1 January 2025. This follows the earlier domestic ban on using, supplying, and manufacturing engineered stone that came into effect in mid-2024.

What’s Covered by the Ban?

• The ban includes engineered stone products like bench tops, slabs, and panels.
• Domestic businesses have already been prohibited from using these materials since July 2024.

How Does This Affect Employers?

If your business previously worked with engineered stone, it’s essential to adjust your practices. Here’s how:

• Find Alternatives: Start sourcing safer materials that comply with the new regulations.
• Update Safety Practices: Even with other materials, silica exposure can still be a risk. Make sure your safety protocols are up to scratch.
• Stay Informed: This is part of a broader push to protect workers in high-risk industries. Keep an eye on future updates around silica safety.

Why This Matters

Silicosis is a preventable disease, and these changes are about putting worker safety first. For employers, it’s a chance to not only comply but also demonstrate a commitment to the wellbeing of your team.

What to Do Next

Here’s a quick recap of how you can get on top of these changes:

1. Review Payroll and Awards: Make sure you’re paying everyone correctly and in line with the law.
2. Transition Away from Engineered Stone: Start using safer materials and update your safety measures.
3. Educate Your Team: Whether it’s payroll staff or construction crews, everyone needs to know how these changes affect them.
4. Keep Checking for Updates: Workplace laws and safety standards evolve, so staying informed is key.

Final Thoughts

These updates are a reminder that workplace relations are constantly changing. By staying informed and proactive, businesses can not only avoid compliance headaches but also build safer and fairer workplaces.

If you’ve got questions or need a hand navigating these changes, we’re here to help. Let’s work together to make 2025 a great year for Australian workplaces.

FairWork Ombudsman

Safe Work Australia

Department of Employment and Workplace Relations