From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence.

From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. The Voluntary Small Business Wage Compliance Code and our supporting guide is now available to help businesses prepare and protect themselves.

What’s changing

From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. This doesn’t include honest mistakes.

We can investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.

There are protections in place for businesses to avoid criminal prosecution. This includes the Voluntary Small Business Wage Compliance Code (Code) and cooperation agreements.

Code and Guide

We can’t refer a small business employer’s conduct for possible criminal prosecution if we’re satisfied that they have complied with the Code in relation to an underpayment.

Ensure You’re Paying Employees Correctly

Businesses of all sizes can download the Voluntary Small Business Wage Compliance Code and our supporting guide to ensure employees are paid accurately.

Small business employers comply with the Code as long as they do not intend to underpay their employees. Compliance is assessed based on several key factors—steps that are already part of good business practices for most employers.

Learn more: Voluntary Small Business Wage Compliance Code

Guide to Understanding the Code

Our Guide to Paying Employees Correctly and the Voluntary Small Business Wage Compliance Code provides businesses with practical advice and tools to better understand the Code. The guide includes:

A handy checklist
Real-life examples
Best practice tips

What You Can Do Now

We’ve updated our website and resources to help you prepare for upcoming changes. Here’s what you can do:

Use the Code and Guide to ensure you’re paying employees correctly.
Access our free tools and resources, including pay rate calculators.
Prepare for key changes starting 1 January 2025, such as:
- Criminal prosecution and cooperation agreements
- Other changes to workplace laws

Workplace Changes Starting 1 January 2025

Key changes include:

Increased penalties for underpayment contraventions for non-small business employers. Learn more: [Litigation].
New definitions and pay rates for entry-level classifications in some awards. Learn more: Entry-Level Classifications Changes.
Updated classifications and minimum pay rates for aged care sector employees. Learn more: Aged Care Work Value Case.