The Fair Work Ombudsman (FWO) has published a guide to the newly-declared voluntary code for small businesses - said to be a blueprint for employers of all sizes - to protect themselves from criminal liability under Closing Loopholes wage theft provisions from January 1 2025. The guide offers practical advice and tools such as a checklist, examples and tips for ensuring employers are paying workers correctly. It also assists in fixing errors.

Wage Theft and Criminal Liability

The Fair Work Ombudsman (FWO) has published a guide to the newly-declared voluntary code for small businesses said to be a blueprint for employers of all sizes to protect themselves from criminal liability under Closing Loopholes wage theft provisions from January 1 2025.

The guide offers practical advice and tools such as a checklist, examples and tips for ensuring employers are paying workers correctly.It also assists in fixing errors.

Steps spelt out in the checklist include finding the relevant award or agreement, ensuring workers are correctly classified, finding out what might change their pay rates and entitlements, following pay slip and record-keeping obligations, and staying up to date with workplace laws.

If an employer "satisfies the code", the FWO says it cannot refer their conduct for possible criminal prosecution or enter into a cooperation agreement.It can though still consider other enforcement options, however, such as compliance notices, enforceable undertakings or civil litigation.

The guide says small businesses do not have to "check off every factor in the code to get the benefit of the code, and no one factor is critical".

I often advise on underpayment matters and how they can be resolved and I recommend that Business owners, Managers, HR Professionals and Payroll personnel download a copy of the Codes from the internet and review it.If you have any trouble downloading a copy, or understanding its content, please email me on john@lambwrc.com.au and I’ll email you an electronic copy of the code you are seeking and assist in your understanding.