Victorian wage-theft laws may be gazumped

The nation’s first wage theft laws are passed in Victoria but federal legislation is likely to be enacted before the state laws come into effect.

Victorian Premier Daniel Andrews addresses the media on Wednesday.

The nation’s first wage-theft laws have been passed in Victoria but federal legislation criminalising serious forms of employee underpayment is likely to be enacted ­before the state laws come into ­effect in 12 months.

The Victorian laws, which will expose employers to fines of almost $1m and up to 10 years in jail, were passed through the state’s upper house on Tuesday night.

The state laws do not come into effect until July 2021. Meanwhile, federal Attorney-General Christian Porter has prepared draft federal legislation criminalising wage theft that will be considered by a working group of employers and unions.

Mr Porter said the Andrews government’s legislation “risks significant duplication of resources, confusion, potential unen­force­ability and, ultimately, waste of public money”.

“The Morrison government is showing leadership on IR reform — bringing business and unions together to agree on sensible changes,” he said. “It is totally ­unnecessary for the Andrews ­government to rush into this ill-conceived venture.”

Victorian Premier Daniel Andrews said on Wednesday his government was delivering on an election promise. “With the greatest respect to the federal ­Attorney-General, I don’t think it’s unnecessary to deliver election commitments,’’ he said.

Asked why he was in effect ­allowing another year of wage theft by waiting until July 2021, Mr Andrews said a “transition ­period’’ was necessary.