Wage theft criminal offence (s 327A FWA from 1 Jan 2025)
In plain English
From 1 January 2025, wage theft will be a criminal offence under the Fair Work Act 2009.
The Fair Work Ombudsman (FWO) is implementing a new criminal offence related to wage theft. Section 327A of the Fair Work Act will take effect from 1 January 2025. This change means employers who intentionally underpay their employees may face criminal charges. The FWO is responsible for enforcing this new law.
Why it matters
This new law highlights the seriousness of wage theft. Businesses must ensure accurate pay records and comply with all wage obligations. Directors and compliance officers need to review payroll practices to avoid potential criminal liability.
AI-assisted summary, grounded in the source link below. Generated 2026-05-23 via gemma3:12b.
Facts
Closing Loopholes No. 2 Act 2024 introduced criminal offence of intentional wage theft from 1 January 2025 — Up to 10 years imprisonment + significant fines.
Outcome
FWO + CDPP investigations underway; first prosecutions expected late 2025.
Read the source
https://fairwork.gov.au/about-us/workplace-laws/wage-theftRules Mate links to the regulator's own publication. We do not republish full decision text. Always verify the latest status against the source before acting.