Major changes to part time work rules and massive fines for serious cases of wage theft

Employers caught deliberately underpaying staff would face $5.5 mil in fines and jail time, under proposed changes to workplace laws.

Attorney-General Christian Porter. Picture: Gary Ramage/NCA NewsWire.

Shop workers, bar tenders and fast food servers will be given greater flexibility to work extra hours under proposed changes to Australia’s workplace laws.

The reforms would also see employers caught deliberately underpaying their staff facing fines of up to $5.5 million and four years behind bars.

Penalties for compliance breaches by individuals and corporations will also be raised, while more work will be done to educate businesses of their obligations.

The package of industrial relations changes will this week be introduced to parliament as the government seeks to fix workplace issues and remove handbrakes on jobs growth as part of the COVID-19 recovery.

Attorney-General and Industrial Relations Minister Christian Porter said most employers did the right thing by their staff but these new laws would punish those who did not.

“There is a small minority of unscrupulous operators who deliberately and systemically seek to underpay their staff,” he said.

“Those that deliberately do the wrong thing will now face a new criminal penalty that could see them jailed for up to four years.

“The majority of employers mean to do the right thing, but it is clear that mistakes are happening.”

Attorney-General Christian Porter. Picture: Sam Mooy/Getty Images

If someone was found guilty of criminal wage theft they would also be automatically disqualified from being a company director.

In a bid to make it easier for workers to recover underpayments, the Fair Work Act will be changed so only claims of more than $50,000 go though major court processes.

Smaller claims could be resolved through the Fair Work Commission through alternative dispute resolution processes.

The reforms would also see employers able to offer part time workers in industries including retail, food and accommodation extra hours at their usual rate, as long as they worked less than 38 hours a week.

The flexibility for extra hours will be contingent on agreement between a worker and their boss, in what the government says is an effort to protect the rights of staff.

“The reforms will give business the confidence and certainty they need to hire permanent employees rather than focusing on traditionally more flexible forms of employment,” Mr Porter said.

“For employees, it means a higher chance of securing permanent employment, with a guaranteed minimum number of hours, paid leave entitlements and, crucially, more hours of work if they want them.”

ACTU Secretary Sally McManus. Picture: David Crosling

ACTU Secretary Sally McManus addressing wage theft was critical, while expressing concerns with other parts of the omnibus bill.

“We welcome any laws that will address wage theft, increasing penalties and cracking down on those who underpay workers is an important start,” she said.

But she warned the high bar for criminal offences meant employers would “unlikely” be caught and the changes could wipe out st”stronger and better” laws in Victoria.

Mr Porter downplayed the protests from unions and business leaders, saying “not every tear is a waterfall and not every disagreement’s a war”.

He said there would be things both unions and business groups were “not going to particularly love”.

Australian Retailers Association chief executive Paul Zahra said the already announced reform plans had been a “long time coming”.

“The benefits of this reform will be seen in the confidence by which the retail industry, as Australia’s largest private sector employer, can move ahead with its hiring plans for next year,” he said.

@tamsinroses