The new law impacting employers coming into effect January 1

January 1st brings a strict warning to employers caught deliberately underpaying their staff to face criminal charges with a maximum prison sentence of 10 years and a maximum fine triple the amount the employer underpaid.

Federal Minister for Employment and Workplace Relations Murray Watt says employees face criminal charges if found guilty of stealing from their boss while – up until tomorrow – underpaying staff hasn’t been considered a crime.

“Our government … just doesn’t think that’s fair, that’s why we changed the law about a year or so ago to bring it on a level playing field,” he told Heidi Murphy.

Press PLAY to hear more about the new law and how it will impact small businesses

Image:Dan Peled/Getty Images.