Following on from their election win, Labor has put criminalising wage theft squarely on the national agenda.
In their Jobs and Skills Summit Issues Paper, the government has made a commitment to boosting job security and wages, and underscored the importance of enhanced workplace compliance and enforcement activities.
Rumblings from Canberra indicate a nationwide approach to wage theft could be on the horizon. In Queensland and Victoria, companies and individuals are already at risk of criminal sanctions (including fines and jail time) arising from the underpayment of workers. With the possibility of a nationalised approach to wage theft criminalisation on the way, businesses will have another risk to add to the list alongside large and unexpected remediation payments, reputational damage, and FWO fines.
In this environment, getting on the front foot with payroll compliance has become a non-negotiable, yet the cost of traditional compliance avenues continues to rise. Businesses need specialised, automated, and cost-effective solutions that work alongside one another while building on their in-house capabilities to ensure a win for both the business and the worker. Keeping RegTech solutions front of mind when considering solutions to the puzzle will ensure compliance and reduce both costs and risk.
It remains to be seen where the government will land following consultation with stakeholders next week, but one thing is clear: costly workforce regulation is ramping up, and businesses need the right tools to stay ahead of the game.
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