The Fair Work Act 2009 has undergone significant amendments, introducing new criminal penalties for serious breaches. These changes reflect the Australian Government’s commitment to protecting workers’ rights and ensuring compliance with workplace laws. For employers, understanding these amendments is crucial to avoid severe penalties, including imprisonment and hefty fines.
This article was written by our team of workplace lawyers. We provide a comprehensive overview of the new criminal penalties, their implications, and practical steps employers can take to ensure compliance.
The amendments to the Fair Work Act introduce criminal penalties for “serious contraventions” of workplace laws. These penalties apply to individuals and corporations found guilty of deliberate and systematic underpayment of employees.
These updates have occurred after significant changes to the Fair Work Act in 2024.
These penalties are in addition to existing civil penalties, making non-compliance a costly and risky proposition for employers.
A “serious contravention” occurs when an employer knowingly engages in conduct that breaches the Fair Work Act and forms part of a systematic pattern of behaviour. Examples include:
The courts will consider factors such as the frequency of breaches, the number of employees affected, and the employer’s intent when determining whether a contravention is “serious.”
The Fair Work Ombudsman now has greater authority to investigate and prosecute breaches. Key changes include:
Employers should be prepared for increased scrutiny and ensure their workplace practices comply with the law.
To avoid criminal penalties, employers must take proactive steps to comply with workplace laws. Here are some practical tips:
Civil penalties involve fines for non-compliance, while criminal penalties include imprisonment and higher fines for serious breaches involving deliberate and systematic conduct.
Yes, individuals involved in decision-making can face personal liability if they knowingly participate in serious contraventions.
The FWO considers factors such as intent, frequency of breaches, and the impact on employees when assessing whether a contravention is serious.
Yes, the penalties apply to all employers, regardless of size. However, small businesses may receive additional support from the FWO to understand their obligations.
Take immediate steps to rectify the breach, such as back-paying employees and updating payroll systems. Seek legal advice to address any ongoing compliance issues.
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