The Victorian Government is seeking tougher penalties for staff underpayment, following a recent spate of high-profile companies found to be breaking the rules.
In April 2018, young Echuca hospitality worker Lucy Kelly recovered almost $10,000 in underpaid wages and superannuation from Cafe 3564, after mediation with the Fair Work Ombudsman and a Federal Circuit Court ruling.
Ms Kelly’s battle for correct pay was a two-year process, which included picketing outside the café and handing out leaflets to passers-by.
The proposed laws introduced into parliament this week, would mean employers who dishonestly withhold wages, superannuation or other employee entitlements would face fines of up to $198,264 for individuals, $991,320 for companies and up to 10 years’ jail.
Employers who dishonestly falsify employee entitlement records, such as payroll records, or who dishonestly fail to keep employment records would be subject to the new laws.
The legislation includes the establishment of a wage inspectorate of Victoria as an authority with powers to investigate and prosecute wage theft offences.
Victorian Attorney-General Jill Hennessy said employers who stole money and entitlements from their workers deserved to face the "full force of the law", including fines or jail time.
“The problem is systematic — that’s why our laws will apply beyond wages and include allowances, gratuities, superannuation and other accruals such as leave, as well as ensuring directors and officers are held to account,” she said.
Last year the State Government held a series of forums to give people an opportunity to tell their stories and have their say on the reforms.
State Member for Murray Plains Peter Walsh said he would examine the bill closely before the vote.
“We are conscious that small businesses across the state will be doing it tough this year as the impact of bushfires and the COVID-19 pandemic continue to be felt,” he said.
Victorian Chamber of Commerce chief executive Paul Guerra said while they supported the legislation and were "completely against non-payment of wages" they questioned why the Victorian Government had moved ahead of the Federal Government.
“The Federal Government is looking at this now and we know they will put something forward soon,” he said.
“We think legislation for Victoria and federal legislation is overkill and will have an affect on business overheads.”
Mr Guerra instead called for more policing and more funding for the Fair Work Ombudsman to undertake compliance and investigations.
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