Employers’ and Directors’ liabilities under new wage theft laws in Victoria

Aug 2, 2021

The Wage Theft Act 2020 (Vic) (Act) commenced on 1 July 2021.

Under the Act, Victorian employers who deliberately underpay their employees may face criminal penalties.

For a serious breach, employers who dishonestly withhold employee entitlements may face fines of over $1,000,000 or up to 10 years imprisonment.

Employers must maintain records of employee entitlements. Failure to do so can also result in criminal penalties.

Importantly, directors and officers could also be held criminally liable for dishonest underpayment or failure to pay wages or the failure to maintain adequate records of employee entitlements.

If you require advice on your responsibilities and potential liabilities as an employer or as a director, please contact Heather Richardson.