What is wage theft?
Wage theft is the deliberate underpayment or non-payment of employee entitlements, criminalised at the federal level from 1 January 2025.
Wage theft occurs when an employer deliberately underpays wages, withholds entitlements, or fails to pay superannuation. From 1 January 2025, intentional underpayment of employees is a criminal offence under the Fair Work Act, carrying penalties of up to 10 years imprisonment for individuals and fines up to $7.825 million or three times the underpayment amount (whichever is greater) for companies.
Common forms of wage theft include paying below award rates, not paying penalty rates or overtime, withholding superannuation, requiring unpaid work (including unpaid trial shifts), making unauthorised deductions, and sham contracting. Employers who self-report underpayments through the Voluntary Small Business Wage Compliance Code may access reduced penalties.
Key facts
- •Criminalised at the federal level from 1 January 2025 — intentional underpayment is a criminal offence
- •Maximum penalty: 10 years imprisonment for individuals
- •Company fines: up to $7.825 million or three times the amount underpaid (whichever is greater)
- •Covers wages, super, leave, penalty rates, overtime, and all other entitlements
- •Self-reporting through the Voluntary Small Business Wage Compliance Code can reduce penalties
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Payslip CheckerFrequently asked questions
How do I report wage theft?
You can report underpayment to the Fair Work Ombudsman online at fairwork.gov.au or by calling 13 13 94. You can also seek help from your union. Keep records of your hours, payslips, and any communications with your employer.
What is the difference between a mistake and wage theft?
Wage theft requires the underpayment to be intentional. Honest mistakes or miscalculations are civil matters (still unlawful, still must be repaid) but are not criminal. The criminal offence targets employers who deliberately underpay.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.