Starting January 1, 2025, new workplace laws will significantly impact how employers handle wage underpayments and other workplace obligations.
- Criminalising Wage Underpayments: Intentional underpayments of wages and entitlements will now be a criminal offence, with potential fines or jail time for employers. This excludes honest mistakes.
- Increased Penalties: Penalties for wage underpayment will rise, with maximum fines of up to three times the underpaid amount for non-small businesses.
- Serious Contraventions: New laws increase penalties for serious contraventions and broaden the definition, holding businesses accountable for knowing or reckless violations.
- Compliance Notices: Employers must now calculate and pay underpaid amounts as required by compliance notices, with courts able to enforce payment.
- Stronger Protections for Employees: New protections prevent employers from discriminating against employees experiencing family or domestic violence.
- Redundancy Pay Changes for Small Businesses: Businesses downsizing due to insolvency may still be required to provide redundancy pay to employees.
These changes are part of ongoing efforts to close loopholes and protect workers’ rights. Be sure to stay updated and ensure your business is in compliance with these new regulations.