10-question quiz for directors, HR heads, in-house counsel. Quantifies personal exposure under Fair Work Act s 550 + wage theft criminal offence (Jan 2025) + 8 other 2026 risk vectors. Risk-tier output + prioritised mitigation.
Last verified: 16 May 2026DIRECTOR / OFFICER LIABILITY — SECTION 550 RISK
Fair Work Act s 550 makes directors, HR managers and senior officers personally liable for contraventions they were "involved in" (knowingly concerned, party to). Civil penalties up to A$99k per contravention (10x for serious). Criminal wage theft from 1 Jan 2025. This score is a starting point — not legal advice.
Has your business had an FWO investigation, audit, or enforceable undertaking in the last 3 years?
Prior FWO interaction substantially increases s 550 accessorial liability exposure for directors and senior managers.
Are you (as a director) aware of any current or recent underpayment, misclassification, or compliance issue?
Section 550 captures persons 'involved' in a contravention — knowledge is a key element. Wilful blindness counts.
Has the business identified any past underpayment in the last 12 months (even self-discovered)?
Self-discovered underpayment is much lower-risk than FWO-found, but it's on the radar.
Does the business have long-term 'casual' employees (12+ months regular pattern) who haven't been offered conversion?
Casual conversion non-compliance is a current FWO enforcement focus. Each refused conversion is potentially a separate contravention.
Does the business engage contractors who work exclusively for the business 4+ days/week at your premises?
Sham contracting under Personnel Contracting [2022] HCA + Closing Loopholes 2024. Directors personally exposed under s 357/358.
Does the business send routine after-hours messages or have an unwritten 'always-on' expectation?
Right to disconnect (s 333M) in force since 26 Aug 2024 (medium/large) and 26 Aug 2025 (small biz). Each contravention up to A$19,800 individual.
Has the business systematically underpaid staff (deliberate or knowing, even if rationalised as 'industry standard')?
Wage theft is a CRIMINAL offence since 1 Jan 2025 under Fair Work Act s 327A. Maximum 10 years imprisonment. Vic/Qld state laws also apply.
Has any employee raised a formal complaint or general protections claim in the last 12 months?
Active complaints + subsequent adverse action = general protections liability (s 340), uncapped damages.
Does the business have a documented compliance program reviewed annually by an external party?
Absence of compliance program is a strong indicator of recklessness for s 550 / wage theft purposes. Documented program is a mitigating factor.
Does the business have qualified, dedicated HR resource (in-house or outsourced)?
Lack of qualified HR resourcing supports findings of negligence in establishing systems.
LOW — standard director risk profile
0 / 30 (0%)
Your responses suggest a standard director risk profile. Maintain current controls and review compliance annually. No specific immediate action required.
From Jan 2025, intentional wage theft carries criminal penalties: up to 10 years prison and fines of $7.8M for companies. See what's changed, how to report, and what constitutes wage theft.
Wage Theft Is Now a Crime: What Workers Need to KnowWage theft became a federal criminal offence on 1 January 2025. Learn about the penalties (up to 10 years prison, $7.8M fines), what counts as wage theft, the small business exemption, how to report it, FWO vs police, and how to recover underpaid wages.
Wage Theft in Australia — Now a Criminal Offence (2025)Wage theft is now a criminal offence in Australia with penalties of up to 10 years' imprisonment. Learn what counts as wage theft, how to report it, and your rights.
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