Companies that fail to keep wage records will face harsher penalties after the passing of the The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017.
Under this Bill, employers will face penalties by up to 10 times for a new category of "serious contraventions".
A court could impose these higher penalties where an employer knew they were breaching their obligations and this conduct is part of a systematic pattern of behaviour.
In such cases maximum penalties of $630,000 and $126,000 per contravention could apply to corporations and individuals respectively.
The Fair Work Ombudsman Natalie James said the new laws will significantly enhance its capacity to take action in cases of exploitation of vulnerable workers.
The onus of proof has also shifted, with employers forced to prove they pay their staff correctly if they are investigated for underpayments. In addition, it is prohibited for employers to unreasonably require employees to make "cashback" payments.
Senior Employment Relations Adviser from Employsure Harry Hilliar says: "If an employer does not keep or provide correct payslips or accurate employee records and an employee makes an underpayment claim, the onus is on the employer to prove they have paid the employee correctly.
“Failure to keep compliant records may incur newly increased fines in addition to exposing a business to significant back payments," Hilliar said.
“This Bill emphasises the importance that all employers take responsibility for their obligations under the Fair Work Act and for the impact of the economic decisions that they make.”
7-Eleven workers was exposed in 2015 for systemic wage fraud and the underpayment of its workers, prompting the company to set up a wages compensation panel.
