Reminder: Underpayment of educator wages is a crime effective 1 Jan 2025 

From 1 January 2025 the intentional underpayment of wages and entitlements, including to those working in the early childhood education and care (ECEC) sector, can be a criminal offence. 

The Fair Work Commission will be able to investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.

There are protections in place for businesses to avoid criminal prosecution. This includes the Voluntary Small Business Wage Compliance Code (Code) and cooperation agreements.

Small business employers conduct cannot be referred for possible criminal prosecution if the Ombudsman is satisfied that they have complied with the Code in relation to an underpayment.

The Code, and its supporting guide, are a valuable resource for small businesses in the ECEC sector, who should be aware of the changes. 

To learn more about the changes please see here.