This video explains the new wage theft laws that came into effect in January of last year and how they may affect employers and employees under SCHADS and other relevant awards. It covers what constitutes wage theft, including underpayment of wages, allowances, penalty rates, and late superannuation payments. The video also explains when wage theft penalties apply, the potential consequences for both companies and individuals, and why manual payroll and timekeeping processes increase the risk of non-compliance. Finally, it highlights the benefits of automating payroll and compliance processes to reduce errors and ensure adherence to Fair Work obligations.
So there's been new wage theft laws ever since January of last year, but what do they mean and how could they impact your business? Wage theft involves underpaying employees, from allowances to penalty rates, to not abiding by Fair Work specific award clauses. It also includes being late to pay superannuation.
As an employer, these can be difficult things to stay on top of, especially if they're not automated. The wage theft penalty only comes in when this act is intentional. This can be purposefully underpaying, ignoring an allowance, or realizing that you have underpaid and intentionally failing to correct it.
Now, according to Fair Work, the penalties for wage theft are either three times the amount underpaid or $8.25 million, whichever is more. These penalties relate to if a company commits wage theft. How about an individual within an organisation? The penalty for an individual can be up to 10 years in prison.
From time and attendance to payroll and accounting, there's no better time than now to automate these processes. Keeping these processes manual increases your risk of incorrectly paying employees. If you'd like to see how you can automate these processes, check out www.paycat.com.au and we'll be happy to help you.