5-Minute HR Challenge: Spot the Compliance Mistake
Wage theft laws are tough and even well-meaning employers can slip up when it comes to pay compliance. Take this quick 5-minute challenge to test your knowledge and see if you can spot the compliance mistake.
The Situation
A casual employee has been paid their base hourly rate but not the weekend penalty rate. The payroll team believes “casual loading” covers this.
Is this compliant with the Fair Work Act?
Casual loading does not replace penalty rates. Failing to pay both is wage theft under the law.
Wage Theft is Now a Crime in Australia
Since 1 January 2025, intentional wage underpayment has been a criminal offence under the Fair Work Act. That means:
- Fines of up to $7.825 million for corporations (or five times the underpayment).
- Fines of up to $1.565 million for individuals (or three times the underpayment).
- Imprisonment of up to 10 years for the worst breaches.
The laws aim to protect workers but place a major responsibility on employers to get payroll right.
Watch our quick video to learn what this means for your business and how to avoid penalties:
Don’t risk it. Audit your payroll now and make sure your managers are trained. For peace of mind, reach out to our team at [email protected] | 1300 720 004.
