Voluntary Small Business Wage Compliance Code

In response to legislation introduced on 1st January 2025 which states “intentionally underpaying an employee’s wages or entitlements can be a criminal offence “the Fair Work Ombudsman released A guide to paying employees correctly and the Voluntary Small Business Wage Compliance Code.

As mentioned throughout the Business Monitor March discussions it is important to note this doesn’t include honest mistakes.

Fair Work states, “a small business employer can’t be referred for criminal prosecution if they (FW) are satisfied that the business has complied with the Voluntary Small Business Wage Compliance Code

Business Monitor has found A guide to paying employees correctly and the Voluntary Small Business Wage Compliance Code invaluable in assisting a number of clients to review their payroll management compliance and understand their obligations and, sign on to the Code.

There are caveats around applicability. The Code is for small business employers who have less than 15 employees. It is not for:

►      larger businesses with 15 or more employees

►      independent contractors

►      hirers of regulated workers.

Even if an employer has complied with the Code, civil actions such as issuing a compliance notice or an enforceable undertaking may still be taken, and civil penalties may still apply. So understanding obligations is key.

At Business Monitor, we have found the advice and guidelines a strong information source to assist our larger international and labour hire clients understand what payroll compliance entails.

Honest mistakes or not, no business wants to be accused of underpaying workers – particularly in today’s cost of living crisis.

Business Monitor is working with all our small business clients to ensure they are signing up to the Federal Register of Legislation - Voluntary Small Business Wage Compliance Code Declaration 2024- minimising risk to maximise success – thank you Fair Work!