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Have you prepared for the new wage theft laws?

Mar 05, 2025


  • 2min

Have you prepared for the new wage theft laws?

Business Owners, Industry News, Legislative Changes

Have you prepared for the new wage theft laws?

From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. This doesn’t include honest mistakes. Employers (including individual directors) who deliberately withhold payment of employee wage entitlements under the Fair Work Act 2009 (FWAct) now face penalties of up to 10 years’ imprisonment and / or fines of up to $7.8 million.

So what does this mean for you?

We take a deep dive into the elements of the offence, and explain self-disclosure and steps you should be taking to ensure that

What constitutes wage theft?

The criminal offence of wage theft under the (FWAct) will be committed if all the following occur:

  • The employer is required to pay an amount under the FWAct or an instrument made under the FWAct, e.g. a modern award or an enterprise agreement.
  • The amount is not an excluded category of payment. Excluded payments are long service leave, superannuation, paid leave as a victim of crime, jury service or emergency services.
  • The employer engages in conduct, i.e. an act or omit to perform an act
  • There is proof beyond reasonable doubt that the employer meant to engage in the conduct.
  • The act or omission results in a failure to pay the required amount on the day it was due.

In simple terms, if it is found beyond a reasonable doubt you deliberately underpay your employees, or knew that your actions would lead to underpayment, even if you didn’t specifically intend it, then you will have committed wage theft.

What if we self-disclose wage theft?

There are protections in place for businesses to avoid criminal prosecution. This includes the Voluntary Small Business Wage Compliance Code (Code) and cooperation agreements for larger businesses that self-disclose.

For small business – a copy of the code can be found here

For larger businesses –  the Fair Work Ombudsman (FWO) will consider a range of factors before entering into an agreement, including the employer’s level of cooperation, their frankness, the gravity of the conduct and their history of compliance. If an agreement is entered into, the FWO is unable to refer the conduct to the Director of Public Prosecutions or the Australian Federal Police.

Compliance with the Small Business Code or self -disclosure, does not prevent an inspector from beginning or continuing civil proceedings in relation to the conduct. A compliance notice, an enforceable undertaking and civil penalties may still occur.

Five steps you can take now as an employer:

  1. Review and update the classification of all current employees under their applicable award or agreement to ensure they are paid correctly.
  2. Review current payroll systems to ensure they reflect any updates to employee entitlements.
  3. When in doubt as to the classification of employees or potential underpayment, seek information or advice from a reliable source – this includes us at Total HRM.
  4. If an employee tells you that they think they have been underpaid, do a thorough check to see if they are right.
  5. If there is an underpayment, take steps to repay it as soon as possible and put systems in place to prevent it happening again.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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Leading Others 2024 Wrap-up (October – December)

Dec 18, 2024


  • 1min

Leading Others 2024 Wrap-up (October – December)

Leading Others Wrap-up

The Leading Others leadership program is designed to equip emerging leaders with the tools, strategies, and frameworks needed to excel in their roles. Drawing on best-practice HR methods and world-class models such as DiSC and WRAW, the program provides participants with practical insights to deepen self-awareness, enhance interpersonal skills, and lead with clarity, confidence, and measurable impact.

Over the past few months, the Leading Others cohort from Bertazzo Engineering has embraced this transformative journey. By applying a range of tools and frameworks, including adaptive leadership and emotional intelligence strategies, they have navigated the complexities of leadership while fostering stronger, more cohesive teams. Their growth has been remarkable, as they continue to develop the skills and resilience needed to thrive in the manufacturing and engineering industry.

The program concluded with the cohort delivering their final presentations to the teams at Bertazzo Engineering and TotalHRM, showcasing their key learnings and how they plan to implement these in their roles. It was inspiring to see the progress they’ve made and the enthusiasm they bring to their leadership journeys. We look forward to seeing how they apply these insights to make a lasting impact within Bertazzo. A heartfelt thank you to Bertazzo for their continued investment in their supervisors and their commitment to building strong, capable leaders for the future.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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Getting Workers Back to the Office

Nov 11, 2024


  • 4min

Getting Workers Back to the Office

Industry News

Getting Workers Back to the Office

Last month, a British cabinet minister warned that excessive working from home will stunt the growth of young professionals. Of course, as per Newton’s theory, this was immediately countered with a tsunami of claims that remote work boosted productivity, mental health, and an endless raft of other positives.

With a new case being brought before the Fair Work Commission, many employers are still unsure what their obligations are and rights around working from home (WFH) as the washup from the Covid era lingers.

Some want all their employees at their desk at 9am, attending meetings in person and operating as a focused team, while others see WFH as a valuable option creating happier workers increasing productivity and output. But problems emerge when there is a disconnect between the two leading to potential areas of conflict.

As employers are switching to dual models mixing remote and onsite work, they are meeting some resistance from workers who would rather stay home.

However, working from home is not an automatic right. Rather, it is part of a negotiation process, and as employer you do have the right to set parameters around WFH or even outright deny WFH requests.

However, some problems have emerged as workers have become used to WFH and do not want to come back. To ease the transition back to the office, company leaders can do a few things to keep the process as smooth as possible.

Make the case for returning to the office

Lay out your cards. Research has shown employees respond better if they are given a reasonable explanation as to why they should return to the office. Identify how much office time versus WFH time is required and explain why. This could be minimum of three core days a week in the office. Explain why, and seek their position on such an arrangement.

Other tactics might include explaining why time spent together is beneficial and promotes better productivity. Stress the benefits of teamwork, personal proximity, and workplace camaraderie.

Listen

There are going to be a broad range of reasons employees want to WFH and it is important employers take these on board. These include childcare, aging parents or avoiding a long commute.  You need to understand why employees are requesting to WFH before any potential negotiations or concessions to take place and be prepared to factor these into discussions. As was highlighted in the recent Fair Work case, you need to look at the individual factors on a case by case basis – your cannot have a blanket rule and apply that across the board.

Focus on carrots, not sticks  

Research shows employees who are coerced back to the office were more disgruntled than those who were lured. Generally, employees will respond better to incentives and reasoned arguments than threats.

Possible strategies might include social events, compressed working weeks, or gym membership. The rule of thumb is reward, not punish.

Review contracts

At some point, there may be a need play a little harder. Although enforcing contractual obligations might be a last resort, it may be necessary. However, there can still be room for negotiation. Even if a contract mandates working at the office, if the employee has become accustomed to WFH, as an employer you can agree to be flexible and negotiate a day or two at home, with the remainder of the week at the office.

While this process may feel time-consuming, reviewing contracts and signalling future iterations or contract renewal can give employers some leverage. Again, negotiation is always preferable to coercion.

Keep communicating

Finally, keep communicating with your employees and adapt your work practices. Being nimble is the key. If you want to retain talent, work with it. Balance your needs with those of your team. Keep talking – dialogue is key and promoting open communication channels is better than top-down directives.

While you might want everyone in the office five days a week, it is also important to understand that this may not happen overnight – or at all. Ultimately employees have the right to request flexible work arrangements including WFH,

The best solution is to negotiate, navigate and adapt to this continuously fluid situation and see this is an opportunity rather than a threat.

Get more out of Total HRM

Guides to help you uncover human resource insights, and make the right changes to improve team delight.

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