Voluntary Small Business Wage Compliance Code
From 1 January 2025, intentional underpayments of an employee’s wages or entitlements can be a criminal offence. For small businesses, there is the Voluntary Small Business Wage Compliance Code which is available from the Fair Work website here.
This Code is not compulsory for small businesses to comply with; however, it does provide some protection where a small business chooses to comply. Fair Work is not able to prosecute a small business who has complied with the Code. Civil penalties may apply, and a compliance notice can be issued, but a criminal prosecution is not available.
This means that a potential criminal conviction does not go on the record, and the matter can be dealt with in civil proceedings, as all underpayments have been prior to 1 January 2025.
The Code includes many steps which are ordinary parts of good business practices, such as checking what the correct rates of pay and entitlements are, keeping accurate and complete records of payslips and entitlements, keeping up to date on the legal requirements and seeking advice from experts where needed and fixing issues promptly when they occur.
As many electrical contractors have less than 15 employees and are therefore considered small businesses under the Fair Work Act, we recommend you familiarise yourself with the Code.
Disclaimer: This summary is a guide only and is not legal advice. For more information, call ECA Legal on 6241 6129 or email ecalegal@ecawa.org.au
