What procurement and payroll managers need to know about Australia’s push to change wage theft laws
In Australia lately, there's been a lot more talk about wage theft because of some new proposed laws. It's hard to believe, but wage theft happens quite a bit. A lot of workers are affected, with about $1.35 billion in wages not getting paid every year. And it's not just small companies that do this. Big companies, restaurant chains and large retail are all involved. Even when it's accidental, not paying employees enough has become a big worry for Australian workers.
For procurement and payroll managers, these new proposed laws mean serious business. If employers knowingly pay their staff less than they should, they could get into big trouble. This could mean going to jail for up to 10 years and having to pay fines of up to $7.8 million. And if the underpayments are really big, the fines could be even higher — up to three times the amount they didn't pay, which could be more than $23.4 million. These new laws show how important it is to follow wage rules carefully for both contractors and full-time employs and how risky it can be if you don't.
Here's what payroll and finance managers need to know about the proposed national wage-theft laws:
Breaking the Law: If bosses don't pay workers fairly on purpose, they could get in big trouble. That means they might have to pay a lot of money in fines or even go to jail.
Protecting Workers: These laws are there to help people who might not always get paid what they're owed, like migrant workers or those who work irregular hours. They'll be safer from getting cheated out of their money.
Secret Reporting: There will be new ways for workers to tell authorities if they're not getting paid right, and they won't have to say who they are. This keeps them safe from any bad treatment.
Keeping Records: Employers have to write down exactly how much everyone works and gets paid. This makes it easier to check if they're playing by the rules.
Paying Fair: The laws make it clear what's the lowest amount workers can get paid. Everyone has to follow these rules, so there's no confusion.
Blaming Advisors: People who give bosses bad advice about paying workers less could also get in trouble. It's not just the bosses who are responsible.
Here are essential steps for your payroll process with Australia's new wage-theft laws, simplified for clarity:
Keep Accurate Records: Use systems that track work hours and payments precisely. Make sure records are easy to find and understand to avoid disagreements.
Check Minimum Wages: Regularly review and adjust payroll to ensure everyone gets at least the minimum wage and fair entitlements.
Clear Contracts: Keep contracts updated with clear details about pay and conditions. Stay informed about any legal changes.
Easy Reporting: Create a secure way for employees to report wage concerns without fear of backlash.
Audit Regularly: Check payroll often to fix any mistakes. It's best to have an outside auditor for fairness.
Updated Software: Make sure your payroll software is up-to-date and can handle new laws. This helps with compliance and cuts down on errors.
Training: Keep your payroll team educated on the latest rules and best practices to stay compliant.
What Paypartners can do to help:
A complete free review and audit of your workforce to identify any payroll issues and provide potential solutions
Let PayPartners manage your payroll, specifically when it comes to your contractors as there is high risk of payment errors and compliance issues when paying contractors
Help you save money, with our low cost and affordable solution you can significantly reduce your administrative burden and have the peace of mind knowing you are protected against any compliancy and payment issues that may arise
Provide simple and easy onboarding and offboarding processes with easily accessible time sheeting through our online portal
Ensure you are covered by all appropriate insurances
Payment for your workers on time, every time