Underpayment of Wages Becomes a Criminal Offence in 2025

From 1 January 2025, deliberately underpaying staff will no longer just be a workplace breach — it will be a criminal offence. Employers who intentionally fail to pay employees correctly may face prosecution, with penalties including heavy fines or even jail time.

Honest mistakes won’t be criminal

The new laws target employers who deliberately do the wrong thing. If a genuine payroll error is made and corrected, it won’t be treated as a criminal offence — though back pay may still be required.

A safety net for small business

Small employers can follow the new Voluntary Small Business Wage Compliance Code to show they are taking genuine steps to get payroll right. This includes keeping accurate records, checking pay rates regularly, and fixing errors quickly.

Why this matters for your business

Payroll is complex — awards change, entitlements vary, and mistakes can happen easily. But with criminal penalties now on the table, compliance has never been more important. Getting payroll right protects not only your staff but also your business and reputation.

Don’t risk costly mistakes

The simplest way to stay compliant is to have payroll handled correctly from the start. At Castlevale Bookkeeping, we manage payroll with precision, from award compliance and superannuation to Single Touch Payroll (STP) reporting.

Payroll mistakes are too costly to ignore. Let us help you stay compliant and confident.

Get in touch today to talk about payroll support tailored to your business.