Criminal Code and Other Legislation (Wage Theft) Amendment Bill 2020
Plain English Summary
Overview
This bill makes deliberate wage theft a criminal offence in Queensland, punishable by up to 10 years imprisonment for stealing and 14 years for fraud. It also creates a simpler, faster and cheaper process for workers to recover unpaid wages through the Industrial Magistrates Court, with free conciliation offered before matters go to a hearing.
Who it affects
Workers who have been underpaid — particularly vulnerable groups like temporary migrants and young people — now have an easier path to recover their wages. Employers who deliberately steal wages face serious criminal penalties for the first time in Queensland.
Key changes
- Deliberate wage theft can now be prosecuted as stealing under the Criminal Code, with employers facing up to 10 years imprisonment
- Fraud by an employer against an employee carries a maximum penalty of 14 years imprisonment
- Small wage claims up to $20,000 can be recovered through a simplified process in the Industrial Magistrates Court
- Free conciliation is offered before wage claims proceed to a court hearing, for both federal and state system workers
- Union officials can represent workers in small claims wage recovery matters without needing the court's permission
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee15 July 2020View Hansard
Referred to Education, Employment and Small Business Committee
The Education, Employment and Small Business Committee examined the Criminal Code and Other Legislation (Wage Theft) Amendment Bill 2020 over six weeks, receiving 27 submissions and holding a public hearing with witnesses from unions, employer groups, legal bodies and individual workers. The committee recommended the bill be passed and additionally recommended that the conciliation process for wage recovery claims be made mandatory rather than voluntary as originally drafted. The bill followed the committee's own 2018 inquiry into wage theft in Queensland, which estimated over 437,000 Queensland workers were not receiving their full wages, amounting to approximately $2.5 billion stripped from the Queensland economy annually.
Key findings (5)
- Unions, individual workers and community organisations broadly supported criminalising deliberate wage theft, while employer groups and some legal stakeholders raised concerns about constitutional validity, enforcement complexity and the impact on small businesses during the COVID-19 economic downturn.
- The criminal offence targets only deliberate and wilful conduct, not honest mistakes, with existing Criminal Code defences such as honest and reasonable but mistaken belief applying to protect employers who make genuine errors.
- Stakeholders across unions, employer groups and the legal sector agreed overwhelmingly that the conciliation process for wage recovery claims should be mandatory rather than voluntary, to prevent employers from simply opting out and dragging out proceedings.
- Several submitters including the Australian Industry Group and Chamber of Commerce and Industry Queensland opposed criminal sanctions, arguing that existing civil penalties under the Fair Work Act were sufficient and that criminalisation could discourage employer self-reporting of underpayments.
- The committee found the proposed penalties of up to 10 years for stealing and 14 years for fraud by employers were proportionate, consistent with existing penalties for equivalent offences such as stealing by clerks and servants.
Recommendations (2)
- The committee recommends the Criminal Code and Other Legislation (Wage Theft) Amendment Bill 2020 be passed.
- The committee recommends the conciliation process for fair work claims commenced under the Industrial Magistrates Court be mandatory, with employers and employees required to make 'reasonable attempts' at reaching agreement.
Committee report tabled
▸Second Reading8 Sept 2020View Hansard
▸14 members spoke9 support5 mixed
As Minister for Industrial Relations, introduced and strongly advocated for the bill, highlighting it criminalises deliberate wage theft and creates a simple wage recovery process for workers.
“As Minister for Industrial Relations and a lifelong trade unionist, I am proud to stand in this House today to debate and advocate for this bill. The bill is about defending and supporting one of the most fundamental tenets of our industrial relations system, the right for a fair day's pay for a fair day's work.”— 2020-09-09View Hansard
Stated the LNP will not oppose the bill but raised significant concerns including constitutional validity, complexity for small businesses, and criticised Labor for not including its own Health payroll failures in the wage theft inquiry scope.
“The LNP will not be opposing these changes. The fundamental point remains that Queensland workers are not best served by the Palaszczuk Labor government whose members only care about their own jobs.”— 2020-09-09View Hansard
As committee chair, strongly supported the bill, arguing that deliberate wage theft should carry the same criminal penalties whether committed by employee or employer.
“Where there is deliberate and intentional theft of a worker's entitlements—and intentionally and deliberately withholding something known to be legally owed to another is theft—there should be an appropriate deterrent and punishment and that deterrent and punishment should apply equally whether the dishonest party is the employee or employer.”— 2020-09-09View Hansard
Stated the LNP will not oppose the bill while highlighting stakeholder concerns about constitutionality, complexity for small businesses, and potential duplication with federal Fair Work provisions.
“As I have outlined, the bill is not perfect but it is a step in the right direction. It will not completely eliminate the underpayment of staff, but it will ensure that the dishonest few who fraudulently thieve money from their staff are punished for their actions.”— 2020-09-09View Hansard
Strongly supported the bill, drawing on evidence from the committee inquiry and experiences in his electorate where workers were told they would never get another job if they complained about underpayment.
“We are not after the small businesses that genuinely make a mistake. We are after the companies that make this their business plan—it is in their business plan to rip workers off.”— 2020-09-09View Hansard
Acknowledged the bill's intent to protect workers but criticised the government for limiting the inquiry scope to exclude its own payroll failures and for taking too long to bring the legislation forward.
“This amendment should have been brought before the House much sooner than the eleventh hour before a state election. If those opposite were serious about protecting workers they would have moved heaven and earth to get this through when the recommendations came back in 2018.”— 2020-09-09View Hansard
Strongly supported the bill as a committee member, dismissing arguments against criminalisation from employer groups and highlighting the bill targets only intentional and deliberate wage theft.
“The measure of wealth in a civilised state is not the currency accumulated by the lucky few, but that state's ability in reducing the inequity. That is what we are doing here today.”— 2020-09-09View Hansard
Supported the bill as a committee member, acknowledging that while the award system is complex, some employers deliberately build wage theft into their business model and deserve criminal penalties.
“If this legislation passes the House today, in the future if a business owner, boss or supervisor decides to do a similar thing to their employee their actions will be treated as stealing.”— 2020-09-09View Hansard
Strongly supported the bill, emphasising that over 400,000 workers are underpaid annually and that the bill ensures employers face the same penalties as employees who steal.
“Employers who steal from their workers will now face the same penalties under the Criminal Code as workers who steal from their employers.”— 2020-09-09View Hansard
Supported the bill, drawing on personal experience of employer pressure to forgo entitlements after double shifts in an intensive care unit, and arguing the legislation protects both workers and honest employers.
“I would think that those people want the ratbags and those people who are out there stealing from workers out of the industry and no longer employers.”— 2020-09-09View Hansard
Stated the LNP will not oppose the bill but raised concerns about constitutional validity, potential inconsistency with the Commonwealth Fair Work Act, and the impact on small businesses navigating complex award structures.
“The LNP does not oppose this bill, but an LNP government would monitor these laws to ensure they do not result in businesses being pursued for honest mistakes which they subsequently rectify.”— 2020-09-09View Hansard
Strongly supported the bill, drawing on personal experience advocating for exploited garment outworkers in the late nineties and criticising the LNP for repealing outworker protections in 2012.
“We fundamentally believe that no business should have to compete with those that do not pay their workers properly.”— 2020-09-09View Hansard
Stated the LNP believes workers deserve to be paid but raised concerns about award complexity for regional employers and the bill's potential to undermine the federal industrial relations system.
“I wish to make it clear that the LNP believe that workers deserve to get paid for the work they do. No-one wants to see workers being ripped off.”— 2020-09-09View Hansard
Strongly supported the bill, arguing it addresses the injustice that employee theft is criminal but employer wage theft is not, and noting it will help shift the power imbalance affecting casual workers.
“It has long been a sore injustice that the service station worker who pockets a chocolate bar faces a charge with a maximum penalty of imprisonment of five years—I think that is the current maximum. However, if that same worker in that same service station gets robbed by their boss of pay they have earned, that robbery is not even considered a crime.”— 2020-09-09View Hansard
▸In Detail9 Sept 2020View Hansard
Amendments 1 to 3 inserted new provisions into the Industrial Relations Act 2016 enabling employees to authorise their employer to share employment information with a registered employee organisation, with civil penalties for non-compliance and protections against unlawful access to information.