We hope you use this as an essential guide to fight wage theft for yourself – and your friends and co-workers! In 2025, wage theft will be a crime, but workers should remain vigilant.
Have you ever heard of ‘wage theft’?
Wage theft happens when you, as an employee, aren’t paid the right pay or allowances that you’re entitled to.
Sometimes your employer makes a mistake or they might be inexperienced and genuinely not know how to calculate wages properly (this can be common in small businesses, especially when they are starting out).
When this happens, it’s not considered a crime, but your employer is still required by law to correct any underpayments.
And, as we explain further below, it’s their responsibility to get it right – the Fair Work Commission makes all the information freely available and accessible so they can fulfil their obligations as an employer.
Unfortunately, underpayments can often be a deliberate attempt to steal money that you’ve already earned. We know it happens a lot and that’s why all workers need to know about it. When underpayments are intentional, it’s called wage theft.
From 2025, wage theft will be a crime all over Australia
If you took $50 out of the till at work, you’d be charged with theft, right? So, why would it be any different if your employer deliberately took $50 out of your pay each week?
It shouldn’t be.
In Victoria and Queensland, wage theft is already a crime. But from January 1, 2025, a federal law will take effect and wage theft will be a crime punishable by Australian federal law.
This is a gigantic moment for union members who’ve campaigned tirelessly against wage theft, and for the right to be paid fairly for hours worked and all other entitlements, such as overtime, superannuation, leave loading, meal allowances, training periods and more.
Even when these new laws come into effect, UWU Industrial Officer Liam McDonald says it will be important to know your rights and be on-guard.
So here are some things you can do about wage theft – and how to look out for it – so you can get your money back.
So, how can I spot wage theft?
There are several red flags that can indicate wage theft. Here are 5 that Liam says are the major ones to look out for.
Red flag 1: You’re not getting payslips
Everyone should get payslips under the Fair Work Act. So if you’re employed and not getting payslips, that’s a major red flag.
“If one part of the law is not being complied with, it’s pretty likely [your employer] isn’t complying with other parts too,” Liam says.
Red flag 2: Your rate of pay changes
If your rate of pay changes and you can’t tell why, it could indicate wage theft.
There are basic things that should be on your payslip, like your pay rate and how many hours you’ve worked.
Red flag 3: The numbers don’t add up
When checking your payslip, make sure the numbers are accurate. Your payslip should say:
(1) how much you earned,
(2) how much tax is taken out and
(3) what is going into your super account.
“Is the amount [on your [payslip] actually going into your bank account? Is your superannuation being paid by your employer? You should check all those things,” Liam says.
Red flag 4: Your pay goes up but your super doesn’t
For award wages, your rate of pay is usually increased by the Fair Work Commission in July each year. Whenever there’s an increase, it should be reflected in your first full pay packet after 1st July.
“If your rate of pay goes up, so does your base rate. That means your penalty rate and superannuation also have to increase,” Liam explains.
PRO-TIP: Don’t only rely on what your payslip says – check your bank account too. And for super, log into your super account every few months to make sure you’ve actually been paid.
Red flag 5: You mention a pay issue to your boss and they don’t fix it right away
You notice an issue with your pay and mention it to your boss. If it was a genuine mistake, they will fix it immediately. The ones who don’t are usually trying to steal your wages.
“The awards now contain entire schedules, where it says ‘if a person works between these hours, this is the rate of pay’. They publish pay guides for every position and casual position and every potential penalty and expenses,” Liam says.
It shouldn’t be that hard to get it right. It is your employer’s job after all.
Who should I report wage theft to?
1. First, you need to be in a union. Unions like UWU have people (like Liam) who are experts and can advise you on what your rights are.
We can talk you through your specific issue, help you understand if there’s definitely wage theft going on, and take you through your next steps.
2. Second, keep all your records. If you have payslips, keep them! If not, keep your rosters or download an app that records your hours of work.
If we work out that you’ve got a case, there are several avenues you can take. Usually, we help members win back stolen wages via the small claims jurisdiction or, for a larger matter, it’ll go to court.
What if I’m worried about keeping my job?
We get it. It’s difficult to pursue wage theft if you’re worried about keeping your job.
“Many people who are underpaid are casual. In industries like hospitality, if you raise a pay issue, they may fix it. But then you might start getting fewer shifts,” Liam explains.
If you file a claim, you can claim for up to 6 years of underpayment. But if you’re being underpaid now, don’t wait for 5 years to make a claim. Talk to your union right now.
“What it doesn’t mean is that you should wait five years to contact the union when you knew you were underpaid five years ago.
“It’s possible to recover stolen wages from that long ago, but it can be quite hard when you don’t have the right records or don’t remember accurately.
So, how long does a wage theft claim take?
According to Liam, recovering wage theft is not a speedy process.
“People need to understand that these matters don’t get solved quickly. Often people wait until it becomes urgent, then try to escalate the issue to get money in the bank.
“Even with a union that deals with this every day, it takes time,” Liam warns.
But, don’t be discouraged. Even if it’s not fast, it’s definitely still worth pursuing. Australians lose an estimated $1bn each year from wage theft.
Workers deserve to be paid the right wage.
Do you think YOU could be a victim of wage theft? Join UWU now to get expert advice and support with future claims.
