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Proactive steps help employers prove that underpayments aren't "wage theft"

Accidental underpayments don't constitute the criminal offence of wage theft, but establishing whether a breach was deliberate or accidental is not always straightforward, a lawyer warns.

Hicksons Lawyers partner and workplace relations specialist Warwick Ryan says navigating Australia's modern workplace laws and 120-plus modern awards can feel like being lost in a maze.

The introduction of criminal wage theft laws on 1 January this year "adds another layer of complexity with serious risk attached", because where underpayment is deemed intentional it's no longer just a civil offence – it's a criminal act with penalties that can include multimillion dollar fines and imprisonment, he says. Further, wage theft can include failures to provide entitlements like superannuation, paid leave, or penalty rates.

Individuals found guilty of intentionally underpaying workers face a maximum of 10 years' imprisonment and/or a maximum fine of three times the amount of the underpayment if the court can determine the amount; or $1.565 million (5,000 penalty units), while bodies corporate can face up to $7.825 million (25,000 penalty units), Ryan says...

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