TAS are writing to update all clients on significant regulatory changes concerning wage underpayments in Australia that will directly impact businesses and associations across the country. These changes underscore the need for directors and leaders to ensure their organisations are fully compliant with employment laws.
Overview of the Changes The Australian government has introduced new regulations that criminalise wage underpayments that came into effect on 1 January 2025. This legislative move reflects a broader effort to strengthen protections for workers and promote fair practices in the workplace. Under the updated framework, deliberate and systemic underpayment of employees can now lead to criminal charges, with severe penalties for non-compliance, including fines and potential imprisonment for individuals responsible.
Key Implications for Associations / Not for Profit Organisations
As directors, if your Association employs staff or is considering employing staff, it is crucial to understand the implications of these changes and ensure that your Associations’ payroll and compliance practices meet the required standards. Key areas to focus on include:
- Review of Payroll Systems: Ensure that your systems accurately calculate employee wages, entitlements, and overtime.
- Review of Contracts of Employments Ensure your contracts of employment are in line and reflect current legislation – noting that existing contracts may need updating.
- Compliance with Awards and Agreements: Regularly review applicable awards and enterprise agreements to confirm adherence.
- Training and Education: Provide training to HR and payroll staff to stay updated on employment laws and their obligations.
- Internal Audits: Conduct regular audits of payroll and employment practices to identify and address any discrepancies proactively.
Why This Matters Non-compliance not only exposes
your Association to legal and financial risks but can also harm your reputation within the industry and among employees. Demonstrating a proactive approach to compliance reinforces your commitment to ethical leadership and fair treatment of staff.
Next Steps To assist you in navigating these changes, we recommend the following actions:
1. Consider outsourcing: De-risk the running of your association and partner with an organisation such as TAS to assist in the management of resources
Alternatively and or additionally…
2. Consider taking legal advice: Engage with legal and HR experts
to review current practices and identify areas for improvement
3. Attend information sessions: Invest in the right training and
support for your team
4. Stay informed: Keep up to date with ongoing regulatory updates
and best practice by subscribing to the TAS newsletter
5. Keep good records: Document all steps taken to demonstrate
diligence