It has been nearly two months since the Voluntary Small Business Wage Compliance Code came into effect, providing crucial support for small businesses in meeting their wage obligations. As of 1 January 2025, intentional underpayment of wages or entitlements is now a criminal offence in Australia, with severe penalties, including fines and potential imprisonment.
To assist small businesses (those with fewer than 15 employees) in navigating these legal changes, the Fair Work Ombudsman (FWO) has introduced the Voluntary Small Business Wage Compliance Code.
By following this Code, businesses can demonstrate their commitment to fair pay practices and may avoid criminal prosecution in cases of unintentional underpayments.
Practical Support for Employers
The FWO provides detailed guidance, including:
- Practical tools and checklists
- Best-practice examples
- Steps to review payroll processes and correct errors
These resources help employers implement compliant wage practices and stay on the right side of the law.
Take Action Now
Contact the team at People Mosaic at info@peoplemosaic.com.au for additional guidance and support.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice.
