Labor plan to jail bosses for underpayment of staff slammed by industry group

A RADICAL Labor plan to jail bosses who underpay staff would cost jobs, according to a key business group.

A RADICAL Labor plan to jail bosses who underpay staff would cost jobs, a business group says.

The Australian Industry Group has slammed the Andrews Government proposal, which would jail bosses who short changed workers for up to 10 years.

Australian Industry Group chief executive Innes Willox said the plan would not work.

“Criminalising underpayments and labelling underpayments as ‘theft’ would deter business owners from employing people and investing,” Mr Willox said.

“Australia’s workplace relations laws and awards are extremely complex and underpayments can be the result of genuine misunderstanding and pay errors.”

STATE ALP CONFERENCE: CRACK DOWN ON WORKPLACE DEATHS IF RE-ELECTED

He said that the Fair Work Act already has penalties for underpayments, making the new plan unnecessary.

Premier Daniel Andrews announced the reform in his speech to party faithful at the Labor state conference on Saturday.

“Whether you’re a convenience store chain or a celebrity chef, if you deliberately and dishonestly underpay your workers, if you deny or deprive them of what is rightfully theirs, you will face jail,” he said.

Employers will face a maximum jail time of 10 years and businesses could be fined up to $950,000.

The legal process for ripped-off workers to recover wages will be fast-tracked, with lower court fees, cases heard within 30 days and a simpler process.

Employers whose negligence leads to the death of a worker will face up to 20 years jail under news laws proposed by the State Government.

Premier Daniel Andrews announced that if re-elected he would extend manslaughter laws to cover workplace deaths.

Under the change he announced at the State ALP conference today, employers will also face fines of almost $16 million if they are held responsible for causing a death in a workplace.

“It couldn’t be more simple. No one should die at work,” he said.

Hundreds of Labor delegates are at Moonee Valley Racecourse from Saturday morning for the annual event.

On Sunday the conference will also debate moving Australia Day from January 26 to May 9, which marks the date federal parliament first met. It comes after three Melbourne councils — Moreland, Yarra and Darebin — stopped referring to January 26 as Australia Day. The federal government stripped the latter two of their ability to host citizenship ceremonies.