Posted on August 01, 2023
Tayla Honey
Wage theft involves an employer withholding an employee’s entitlements. It may be surprising to some, that estimates indicate that Australians are collectively underpaid $1.35 billion a year[1].
Unfortunately, it is often young and vulnerable workers that are taken advantage of with the hospitality industry being the most affected. Many of these employees do not speak up out of fear of retribution and the possibility of subsequent adverse action their employer may take.
You may be a victim of wage theft if your employer has:
- Knowingly and dishonestly underpaid you or withheld other employee benefits (including superannuation); or
- Knowingly falsified or avoided keeping employee entitlement records to gain financial advantage.[2]
The Victorian Government under the Wage Theft Act 2020 (No.21 of 20) (The Act), was the first state to criminalise the action of wage theft in July 2021. Under The Act, employers individually face penalties of up to 10 years imprisonment or a fine up to $200,000. Queensland is the only other state to enact similar legislation criminalising the action.
There are a multitude of ways in which an employer can withhold an employee’s entitlements including:
- Underpayment or non-payment of minimum wage entitlements;
- Failure to pay overtime hours, penalty rates, superannuation and any other allowances owed;
- Misclassifying employees under the wrong award; and
- Rejecting requests for leave.
Wage theft is a serious concern for both employees and employers alike. If you require assistance regarding concerns with your wages as an employee or ensuring that you are complying with your obligations as an employer, please contact one of our friendly team at Scanlan Carroll.
[1] Australian Council of Trade Unions, Submission No 38, to the Senate Economics Committee of the Australian Parliament, Inquiry into the Unlawful Underpayment of Employees’ Remuneration (6 March 2020) 13.
[2] Wage Theft Act 2020 (No.21 of 20).
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