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Action under Victorian state law can result in up to 10 years imprisonment and fines of $1.1 million.
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First criminal wage theft charges lodged under Victorian act
30 November 2022
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A restaurant and its accountant have been slapped with 94 charges by the Wage Inspectorate of Victoria, in the first action brought under the Victorian Wage Theft Act 2020.
Wage Inspectorate Victoria charged Rehmat & Mehar Pty Ltd (trading as the Macedon Lounge) and its officer over withholding nearly $7,000 in employee entitlements, including salary, penalty rates and superannuation, over four months to November to four young former employees.
Under the Victorian Wage Theft Act 2020 it is illegal for an employer in Victoria to pay their workers less than they are owed or keep their benefits.
Rehmat & Mehar Pty Ltd. and one of its officers face 47 charges and the case has been adjourned to 21 February 2023 for further mention at the Magistrate’s Court of Victoria.
Wage theft offences include intentional and dishonest behaviour but exclude honest mistakes made by employers that exert reasonable diligence in paying wages and benefits.
Robert Hortle, the commissioner of the Wage Inspectorate in Victoria, said that Victorians could be sure that the office was working hard to look into reports of wage theft and planned to bring more cases before the court.
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“The Wage Inspectorate has been investigating complaints, interviewing witnesses, and exercising our coercive powers,” he said.
“We take each report seriously and will prosecute where appropriate, as per our Compliance and Enforcement Policy.
“These are the only standalone criminal wage theft laws in Australia. There are serious penalties for dishonestly withholding employee entitlements in Victoria.”
Since 1 July 2021, the Wage Inspectorate has initiated 10 prosecutions for offences that carry a maximum sentence of 10 years in prison for individuals and a fine of over $1.1 million for businesses.
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