Australia’s New Wage Theft Laws Make Intentional Underpayment a Criminal Offense, Punishable by Up to 10 Years in Prison
Australia has implemented new laws making intentional wage theft a criminal offense, with severe penalties for dishonest business owners. Under the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, company directors found guilty of wage theft could face up to 10 years in prison and fines as high as 7.83 million Australian dollars (approximately 4.87 million U.S. dollars). The new laws target businesses caught in underpayment scandals, such as those involving major companies like Woolworths, Qantas, and 7-Eleven, which have been under scrutiny for wage theft cases in recent years. Previously, company directors could only be investigated under civil laws, which lacked the threat of imprisonment. The Fair Work Ombudsman now has expanded powers to prosecute dishonest employers under the new legislation, a move hailed by labor advocates as a significant step toward protecting workers’ rights in Australia.
