Wage theft has more than doubled in Australia in the past five years, according to a new analysis of data from the Fair Work Ombudsman.
Throughout the financial years spanning from 2019-2020 to 2023-2024, over 16,700 investigations into wage theft were conducted, finding that 9401 businesses (56 percent) were not following regulations.
Other industries that ranked within the top 10 worst offenders for wage theft, based on the number of businesses per 100,000 deemed non-compliant by Reckon, included administrative and support services (281.8); other services (221.2); retail trade (199.6); electricity, gas, water, and waste services (199.3); transport, postal, and warehousing (198.2); arts and recreation services (195.5); manufacturing (179.8); and mining (177.8).
Mining was at the top spot in terms of the average amount of money recovered per non-compliant business, at more than $4.5 million.
That was followed by the utilities service sector at more than $2.5 million.
The report highlighted that wage theft levels varied from state to state, with the Northern Territory being the worst relative offender, followed by Tasmania, Queensland, South Australia, the ACT, Victoria, New South Wales, and Western Australia.
The findings also indicated that most wage theft inquiries were initiated by employees rather than being self-reported by employers, although an RFA is not automatically an indication of any pay discrepancies.
“Businesses can safeguard themselves by consistently reviewing payroll systems, staying updated with industry-specific regulations, and quickly addressing any discrepancies,” Allert advised.
“By putting in place strong compliance frameworks, investing in continuous training, and leveraging technology, businesses can avoid the expensive repercussions of non-compliance and also foster a robust level of trust with their employees, ensuring a fairer and more sustainable work environment.”
