A Macedon Ranges restaurant owner is facing jail time and a more than $1 million fine after being the first in Australia to be charged under the Victorian Wage Theft Act.
Ninety-four criminal charges were filed in the Magistrates Court by Wage Inspectorate Victoria against Macedon Lounge and its owner.
It was alleged that between July and November 2021, Rehmat & Mehar Pty Ltd and its officer, or owner, withheld over $7000 in employee entitlements from four young former staff members, including wages, penalty rates and superannuation.
“The offence of dishonestly withholding employee entitlements under the Wage Theft Act 2020 is punishable by a fine of over $1 million (6000 penalty units) for companies and up to 10 years’ jail for individuals,” a government statement said.
In July last year it became a crime for an employer in Victoria to dishonestly underpay staff or withhold their entitlements.
Wage Inspectorate Victoria commissioner Robert Hortle said Victorians could be confident the body was “doggedly” investigating wage theft report and intended to bring further appropriate matters before the court.
“The Wage Inspectorate has been investigating complaints, interviewing witnesses and exercising our coercive powers. We take each report seriously and will prosecute where appropriate, as per our compliance and enforcement policy,” he said.
“These are the only stand-alone, criminal wage theft laws in Australia. There are serious penalties for dishonestly withholding employee entitlements in Victoria.”
Victorian Trades Hall Council secretary Luke Hilakari said the first prosecution of criminal wage theft was “incredibly important”.
“When you’re talking about wage theft, you’re almost always talking about people on the minimum wage and you’re often talking about young people or migrant workers. It is stealing from the people who can least afford it – so even relatively small amounts of money can have a devastating impact on the worker and their family.”
Macedon Lounge was contacted for comment.
The matter has been listed for mention in the Broadmeadows Magistrates Court on February 21, 2023.
