From www.claytonutz.com: Australian employers who intentionally underpay employee wages may face criminal penalties under amendments to the Fair Work Act 2009, which began on January 1, 2025, and impose a maximum prison sentence of 10 years for individuals.

The reforms allow the Office of the Fair Work Ombudsman to investigate underpayment claims and escalate cases to the Commonwealth Director of Public Prosecutions and the Australian Federal Police.

Employers must proactively address wage compliance issues and establish a corporate culture that promotes adherence to workplace laws to avoid significant penalties, including up to $7.825 million for companies or three times the amount of the underpayment.