Businesses can be prosecuted for not paying employees enough. Here's how it's done.

According to the Fair Work Ombudsman, only intentional underpayment of employees will be prosecuted under their new small business wage compliance code and criminal underpayment offence. These changes came into effect on January 1st, with the aim of ensuring that small businesses with under 15 employees take proactive measures to pay their staff correctly.

Under the new legislation, individuals from businesses of any size who are found guilty of intentionally underpaying their employees could face up to 10 years in prison. However, Fair Work Ombudsman Anna Booth reassures small business owners that genuine mistakes will not be prosecuted under the new laws.

Booth also emphasizes that compliance with the Voluntary Small Business Wage Compliance Code will protect small businesses from potential prosecution. Both the code and a guide to paying employees correctly can be found on the FWO's website.

The code outlines a non-exhaustive list of actions that employers can take to ensure compliance, such as making reasonable efforts to ascertain the correct rates of pay and staying up to date with their obligations. Employers can also seek information and advice from reliable sources to ensure they are paying their employees the correct amounts.

Under the new criminal underpayment offence, significant penalties can be imposed on employers found guilty of intentional underpayment. Businesses could face a penalty of three times the amount of the underpayment or up to $8.25 million. Individuals could face a maximum of 10 years in prison and a penalty of three times the underpayment or up to $1.65 million.

The FWO also reminds small business employers that compliance with the code does not protect them from civil remedies for breaching workplace laws. Affected employees or relevant unions can still bring civil litigation against employers who fail to meet their obligations. Booth encourages employers of all sizes to utilize the FWO's free resources to ensure their employees are receiving their legal entitlements.

In conclusion, while the new legislation aims to crack down on intentional underpayment of employees, it also provides protection for small businesses who comply with the Voluntary Small Business Wage Compliance Code. Employers are urged to take proactive measures to ensure they are paying their employees correctly and to seek advice from reliable sources to avoid any potential penalties.

[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]