Important Changes to Workplace Laws: What Business Owners Need to Know

by | Feb 6, 2025 | Uncategorized | 0 comments

As accountants and business advisors, we want to alert our clients to significant changes in workplace laws that affect your obligations as employers. Here’s what you need to know about these crucial updates.

Key changes to criminal penalties:

  • From January 1, 2025, intentional wage underpayment becomes a criminal offense
  • This applies to deliberate underpayment of wages, superannuation, and other entitlements
  • Criminal penalties can include fines and imprisonment
  • Honest mistakes are explicitly excluded from criminal prosecution

Changes to civil penalties:

  • Maximum penalties for non-small businesses have increased
  • Penalties can now reach up to 3 times the underpayment amount
  • Businesses with 15+ employees face 5 times higher penalties for breaching:

 – National Employment Standards
– Award obligations
– Pay slip and record-keeping requirements
– Compliance notice requirements

Protection measures for businesses:

  • Small businesses can access protection through the Voluntary Small Business Wage Compliance Code
  • Employers can enter into cooperation agreements by voluntarily disclosing underpayments
  • These agreements can prevent criminal prosecution referrals, though civil penalties may still apply

Compliance notice changes:

  • Fair Work Inspectors can now require employers to:
    – Calculate underpayment amounts
    – Pay the amounts owed to affected employees
  • Courts can order partial or full compliance with these notices

Our recommendations:

  • Review your payroll systems immediately
  • Ensure you understand all employee entitlements
  • Maintain thorough wage and time records
  • Consider regular payroll audits
  • Seek professional advice if you identify compliance issues

Remember: As your accountants, we’re here to help you navigate these changes. The penalties for non-compliance are significant, but with proper systems and professional guidance, you can ensure your business meets all obligations.

Need help reviewing your payroll compliance? Contact our office to schedule a consultation. Prevention is always better than cure, especially with these new penalties on the horizon.