Record Fine for Construction Company's Wage Theft in Australia

A construction company has been fined a record $1.8 million in Australia for underpaying workers, marking the largest fine to date for this offense. The chief executive officer (CEO) was also personally ordered to pay $1.6 million for her role in the violations, which included failing to pay employees minimum wages, not providing annual leave, requiring employees to repay portions of their wages, and issuing misleading pay slips.

These actions come amidst a broader crackdown on wage theft, which is estimated to cost workers $1.35 billion annually across all industries. The government emphasizes that wage theft disproportionately affects vulnerable workers, such as women, young people, and migrants. Introducing amendments to the Fair Work Act, then-employment minister Tony Burke stated, “For some employers, wage theft has become part of their business model. It’s well past time we end this epidemic.”The new legal framework allows for prison sentences of up to 10 years for CEOs, finance managers, or company directors found guilty of deliberately underpaying wages. This maximum prison sentence for deliberate wage theft will be comparable to sentences in Victoria imposed for serious crimes like child grooming, possession of child pornography, and rape. The legislation also targets individuals who passively participate in wage theft. Offenses under Commonwealth law, such as being an accessory, may lead to lesser prison sentences for HR managers, finance managers, or payroll officers complicit in the wrongdoing.The Australian Council of Trade Unions has long advocated for corporate prison sentences for wage theft, arguing that an employee stealing money from their employer can face up to 10 years in prison for theft. They contend that employers stealing millions of dollars in wages from employees should face a similar penalty.The government believes that the prospect of imprisonment will deter deliberate wage underpayment

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