Underpayment of wages can result in Jail time

Underpayment of wages can result in jail time for Business owners AND directors when convicted of the offence of knowingly underpaying staff. It is now a criminal offence for QLD employers who underpay their staff.

Legislation was passed by the Queensland Labour Government. Workers or a Union acting on behalf of a worker can initiate the claim. If found guilty this wage theft is punishable up to 10 years for stealing and 14 years if there is fraud involved. See further information. 

Underpayment issues are often due to the complexity of our industrial relations system. There are of course those who deliberately seek to underpay their staff which should be called out. What is considered as “knowingly underpaid” is yet to be tested but it is sure to include should have known.

It’s now even more important to make sure that your employees are being paid correctly under their correct Award or Agreement. It’s not just their hourly rate but also that they are also being paid under the correct classification for the duties they perform.

JobKeeper directions are adding even more complexity whilst giving employers some flexibility to meet business needs. Make sure that you are familiar with Award changes and JobKeeper directions when making changes to employees working arrangements. The original rules have been changed in this space more than once –  the JobKeeper directions were updated again today on Fairworks website.

For further reading – Qld Govt Wage Theft  

With so much to focus on and so many changes taking place for small business owners it is hard to keep on top of everything. Don’t take a gamble if you are unsure seek help to make sure you have this right. If you would like us to arrange a review of your wages in light of these changes please do not hesitate to contact us.

KBAS Bookkeeping partners with you to take your business to the next level.

To find out how we can support you for success. Contact Us Today!
Scroll to Top