Are you at Risk of Criminal Wage Theft?

Are you at Risk of Criminal Wage Theft? Even big businesses like P’Nut Street Noddles, Rock Pool, Super Retail Group and others with large HR departments have recently been fined for underpaying employees.

It breaks Impact HR’s heart that our small and medium sized businesses are at risk of Criminal Wage Theft legislation that’s been introduced on January 1, 2025. 

That’s why we are making Award Summaries available FOR FREE for all business owners to access.  

Small business owners are more at risk than their large business counterparts because we often focus on 3.5% increase to the minimum wage and don’t look carefully at the other level within our award. And they might not realise that they’re covered by more than one award. 

What you Need to Know? 

• From 1 July 2025, the Fair Work Ombudsman increased the national minimum wage. 

• When the minimum wage increases, every level of the award increases. 

• The Fair Work Ombudsman also increases allowances. 

For small businesses, staying compliant with these changes is not just best practice; it is essential. This makes it more important than ever to review your payroll and ensure your employees are receiving the correct pay in line with the updated rates. 

6 Practical Steps to Ensure your Compliance 

• Check employee classifications to ensure employees are correctly classified against the relevant award.
• Review employees pay rates against the updated rates. 
• Check all relevant penalties, allowances and benefits have been correctly applied. 
• Communicate the changes to the eligible employees in writing. 
• Update payroll systems with the new rates, effective 1 July. 
• Document your processes to show genuine compliance efforts. 

With the increased minimum wage now in effect and the risk of criminal penalties for underpayment, it’s crucial that small businesses take the time to get it right. If you’re unsure about award classifications, pay rates, or your obligations under the updated legislation, we are here to help.  

Payroll is complex, but with the right support it doesn’t have to be. Reach out with questions and we’ll help guide you on the way. Call us on 1300 474 672 or book a meeting today by clicking the button below!