Ai Group opposes the proposed introduction of criminal penalties for the underpayment of wages, Innes Willox, Chief Executive of the national employer association, Ai Group, said today.
In a submission in response to the Federal Government’s Consultation Paper on Criminalising wage underpayments and reforming civil penalties, Ai Group said the proposal would introduce a profound change to Australia’s workplace relations laws.
“Criminal penalties do not address why most underpayments occur,” Mr Willox said.
“They instead prioritise the punishment of employers while leaving underpaid workers out of pocket.
“Criminal proceedings would disadvantage workers, including the most vulnerable, by significantly delaying civil recovery of underpayments while criminal proceedings are taking place.
“Where a criminal case is underway, any civil case to recoup unpaid amounts would no doubt be put on hold by the Court until the criminal case is concluded.
“This means underpaid workers could be waiting years for redress.
“Exposing businesses, directors and managers of businesses to criminal penalties would operate as a major barrier to employers self-disclosing and rectifying underpayments.
“It will foreseeably discourage constructive engagement with the Fair Work Ombudsman.
“An unduly punitive framework will also deter investment and discourage employment growth.
“Any contemplation that criminal underpayment offences apply to non-deliberate conduct relating to underpayments would potentially capture many employers struggling to navigate Australia’s complex workplace relations system.
“Ai Group does not in any way condone non-compliance with workplace laws.
“However, these matters should be dealt with under the Fair Work Act’s civil contravention framework and existing labour exploitation offences under the Commonwealth Criminal Code," Mr Willox said.
Read Ai Group's full submission here
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