The Crimes (Theft by Employer) Amendment Bill

Last week parliament passed the Crimes (Theft by an Employer) Amendment Bill. This Bill is aimed at addressing dishonest employer practices in relation to paying employees. Employers who intentionally fail to pay money an employee is entitled to, as either specified in their Employment Agreement or in legislation, can be held criminally accountable. The Bill is now awaiting royal assent.

The Bill enables an employee to take a matter to the police. Penalties include up to one year in prison and a fine for an individual of up to $5,000, and a company is liable for a fine of up to $30,000.  The changes do have caveats which protects employers from genuine mistakes or interpretations of terms. The employer must be shown to have ‘intentionally’ failed to pay the money owed. Even if this aspect can be proven beyond reasonable doubt, if the employer has a ‘reasonable excuse’ for the non-payment then that will be a successful defence. What will be deemed to be a reasonable excuse only time will tell.

The Bill inserts the following into section 220AA of the Crimes Act:

(1)  This section applies to person (A) who –

(a)  employs another person (B); and
(b)  is required to pay any money owed to B in relation to the employment under –

(i) an employment agreement (whether or not the agreement is in writing); or
(ii) an Act (for example, the Holidays Act 2003, the Minimum Wage Act 1983, or the Wages Protection Act 1983).

(2)  A commits theft if A intentionally fails, without reasonable excuse, to pay the money to B.

If you have any questions or need assistance navigating these changes, please contact Chapman Employment Relations. Our team of experts is here to provide you with the guidance and support you need to ensure compliance. Reach out to us today to learn more about how we can help you.