NEW CRIMINAL UNDERPAYMENT LAWS START 1 JANUARY 2025

From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. The Voluntary Small Business Wage Compliance Code and the Fair Work Ombudsman’s supporting guide is now available to help businesses prepare and protect themselves.
 
What’s Changing
From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. This doesn’t include honest mistakes.
 
The Fair Work Ombudsman (FWO) can investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.
 
There are protections in place for businesses to avoid criminal prosecution. This includes the Voluntary Small Business Wage Compliance Code (Code) and cooperation agreements.
 
Code and Guide
The FWO can’t refer a small business employer’s conduct, for possible criminal prosecution, if they are satisfied that the Code has been complied with, in relation to an underpayment.
 
A small business employer will comply with the Code, if they don’t intend to underpay their employees. This will be assessed by looking at several factors. These factors aren’t new to compliant employers. Instead, they are steps many already take, as part of good business practice.
 
Find out more @ Voluntary Small Business Wage Compliance Code.
 
Guide to Help you Understand the Code
The FWO Guide to paying employees correctly and the Voluntary Small Business Wage Compliance Code can help businesses to understand the Code. It offers practical advice and tools including a handy checklist, examples and best practice tips.
 
 
CHANGES TO ENTRY-LEVEL CLASSIFICATIONS IN SOME MODERN AWARDS

From 1 January 2025, 45 modern awards will be varied to ensure that the lowest classification applying to ongoing employment has a minimum rate of pay of at least the ‘C13’ rate (currently $915.90 per week). These changes will also be made to the Horticulture Award 2020 and Pastoral Award 2020 from 1 April 2025.
 
Entry-level classifications in these awards with a rate of pay below the C13 rate will either be increased to a C13 rate or changed to ensure that employees transition to a classification with a C13 or above rate of pay within 6 months of commencing.
 
Find out more @ Changes to entry level classifications in modern awards.
 
 
RECENT CHANGES THAT HAVE STARTED

There have been other recent changes to workplace laws.

These include:

• changes to casual employment
• a new right to disconnect
• independent contractor changes
• new regulated worker rules.

Find out more @ Closing Loopholes.
 
For a visual snapshot of all the Closing Loopholes changes and when they start, check out the FWO Closing Loopholes - Visual Snapshot.