Employers could be thrown behind bars for wage theft if the Labor government is re-elected at the November Victorian election.
The premier, Daniel Andrews, made the announcement in his speech to party members at the Labor state conference on Saturday.
“Whether you’re a convenience store chain or a celebrity chef, if you deliberately and dishonestly underpay your workers, if you deny or deprive them of what is rightfully theirs, you will face jail,” he said.
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Employers will face a maximum jail term of 10 years and businesses could be fined up to $950,000.
The legal process for ripped-off workers to recover wages will be expedited – court fees will be lowered, cases will be heard within 30 days and the process simplified.
There has been increasing concern about wage theft and unions have stepped up campaigning on the issue.
The Labor party announcement was welcomed as a “game changer” by United Voice, which represents hospitality workers.
The union’s Victorian secretary, Jess Walsh, said the state’s renowned cafe culture was made successful by workers who were “having their wages stolen every day”.
“They’re putting employers on notice that they won’t be silent any more. We’ve seen that when workers speak out and name and shame venues, other employers take notice and change their behaviour too.
“Making wage theft a crime is a game changer for young hospo workers. The choice will be clear – pay the legal minimum award, or face jail time. Employers won’t be able to just ignore or intimidate their staff when they speak out, because the stakes will be a whole lot higher.”
James Lea, a bartender, said the move was long overdue.
“Everyone I know who works in hospitality has had wages stolen from them,” he said.
Andrews also announced stronger penalties for employers found culpable for workplace deaths.
“That doesn’t just mean thousands of dollars in fines, that means millions and it’ll mean jail time – up to 20 years.”
There had been 234 workplace deaths in the past decade in Victoria, he said.
Employers whose negligence leads to the death of an employee or site visitor will face fines of almost $16m and individuals could face up to 20 years in jail.
WorkSafe will be responsible for prosecuting employers.
Hundreds of Labor delegates gathered at Moonee Valley Racecourse on Saturday morning for the annual event.
On Sunday, the conference will debate about moving Australia Day from 26 January to 9 May, which marks the date federal parliament first met.
Three Melbourne councils – Moreland, Yarra and Darebin – have stopped referring to 26 January as Australia Day. The federal government has stripped the latter two of their ability to host citizenship ceremonies.
