The original version of the Government’s Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill contained a provision that would have clarified that the Wage Theft Act 2020 (Vic) (Victorian Wage Theft Act) does not apply to alleged underpayments under the Fair Work Act 2009 (FW Act) or to awards and enterprise agreements made under the Act. The FW Act contains comprehensive provisions which deal with underpayments and other compliance and enforcement matters.

Ultimately, the version of the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 that was passed by the Commonwealth Parliament only deals with casual employment matters (see Employer Advice NAT 043/21), leaving doubt about whether or not the Victorian Wage Theft Act applies to alleged underpayments under the FW Act.

The Victorian Wage Theft Act is operative from 1 July 2021.

The position of the Victorian Government is that the Victorian Wage Theft Act applies to all employers and employees in Victoria. The Act contains terms of imprisonment of up to 10 years for employers, directors and managers who deliberately underpay employees. Maximum penalties of around $1 million apply to companies.

Employers should ensure that they have the systems in place to ensure compliance with relevant workplace laws, regulations, awards, and enterprise agreements.