A forthcoming voluntary code aimed at protecting compliant small businesses from criminal liability under the “Closing Loopholes – intentional wage theft provisions” will also serve as a guide for all employers, according to Fair Work Ombudsman (FWO) Anna Booth.
Speaking at the Australian Labour Law Association’s national conference, Ombudsman Booth highlighted two “safe harbours” in the Fair Work Act’s new criminal penalty provisions for underpaying with intent.
The first safe harbour is for small businesses that adhere to the yet-to-be-released ‘Small Business Breach Compliance Code’. This Code is expected to be issued as a legislative instrument by year-end.
Ombudsman Booth described this code as a fantastic tool, that will be accompanied by educational resources. It’s foreseen to be declared by the Minister on or before the first of January 2025. It’s stated that this Code will set the standard for employer compliance in Australia.
The second safe harbour entails “Cooperation Agreements” for employers who voluntarily self-report potential criminal liabilities.
However, these agreements may still be seen as unavailable if the Fair Work Ombudsman detects underpayment through investigations or via proactive visit.
Self-reporting employers can still negotiate a cooperation agreement, designed to “incentivise good behaviour” that encourages good practices and protects against prosecution, provided the business offer “voluntary, frank and complete disclosure” and continues cooperating.
Ombudsman Booth noted that compliance with the small business code would prevent the FWO from referring matters to the Commonwealth Director of Public Prosecutions or the AFP.
She affirmed the “simple” code will access critical compliance factors, including the efforts an employer has made to to keep up to date the information that it has relied upon; the degree of authority and the source of that information; the belief that they have about the accuracy of that information; and the steps they’ve taken if they’ve discovered underpayments have occurred.
If you are in need of assistance please contact MEA’s Workplace Relations Team on 1300 889 198 or email workplacerelations@mea.asn.au.
Master Electricians Australia can help you to manage your safety requirements for your business.
Our comprehensive safety solution, ME Safety, is a compliant safety system that provides a single holistic package.
Using cloud technology, it can be used on a number of platforms to help you manage your workplace safety in real time.
Get access to:
- A support hotline – Our national team of advisors are waiting for your call.
- Safety tools – Keep tracks of tasks, records, licences and more.
- Safety documents – Templates and documents including SWMS, policies, procedures and more.
