Is underpaying staff a crime in Australia?

Short answer. It can be. Since 1 January 2025, an employer who intentionally underpays wages, superannuation or other entitlements can commit a criminal offence under the Fair Work Act. Honest mistakes that are corrected are treated differently. Victoria also has its own wage theft laws. Get legal advice and an independent recalculation early.

What changed

From 1 January 2025, intentional underpayment of wages and many entitlements can be a criminal offence under the Fair Work Act. It covers amounts such as wages, superannuation, leave, penalty rates and allowances. Purely contractual payments such as bonuses are not covered.

Mistakes versus intent

The offence targets intentional conduct. Employers who find a genuine error and fix it promptly are in a very different position, and the Fair Work Ombudsman can enter cooperation agreements with employers who self-report.

What to do if you suspect a problem

• Speak to an employment lawyer first.
• Preserve payroll, roster and timesheet records.
• Have entitlements recalculated independently, starting with a sample.
• Plan back payments and superannuation with your advisers.

This is general information. Penalties and procedures change, so get legal advice for your situation.

General information only. It does not take account of your circumstances and is not legal, tax or financial advice.