Pay employees in accordance with the applicable modern award
Apply the correct modern award rates, penalties, allowances, and overtime — wage theft is now criminal.
Who must comply
All national-system employers (most private-sector employers).
What triggers it
Employing staff covered by a modern award.
When due
Each pay cycle, ongoing.
Evidence required
Time records, payslips matching award calculations, classification documentation.
Max penalty
Civil penalty up to $99,000 per breach (individuals) or $495,000 (corporations); criminal wage theft up to 10 years prison + 3× benefit
Summary
Employers must apply the correct modern award (or enterprise agreement) covering each employee, including minimum rates, penalty rates, overtime, allowances, and casual loading. From 1 January 2025, intentional underpayment is a criminal offence under the Fair Work Act, carrying up to 10 years imprisonment for individuals and 3× benefit penalties for corporations.
Enforced by
Source legislation
Topics
Related obligations
Frequently asked questions
- Who must comply with employees in accordance with the applicable modern award?
- All national-system employers (most private-sector employers).
- What triggers employees in accordance with the applicable modern award?
- Employing staff covered by a modern award.
- When is employees in accordance with the applicable modern award due?
- Each pay cycle, ongoing.
- What is the maximum penalty for employees in accordance with the applicable modern award?
- Civil penalty up to $99,000 per breach (individuals) or $495,000 (corporations); criminal wage theft up to 10 years prison + 3× benefit
- What evidence is required for employees in accordance with the applicable modern award?
- Time records, payslips matching award calculations, classification documentation.
Source: https://fairwork.gov.au/pay-and-wages. Rules Mate is not a law firm. Always verify against the live regulator source before acting.