MELBOURNE, 29 November 2022: The Macedon Lounge & owner faces wage theft charges laid under the Victorian Wage Theft Act 2020 and the first in any Australian jurisdiction. It is alleged that, between July and November 2021, Rehmat & Mehar Pty Ltd and its officer breached wage theft laws by dishonestly withholding over $7,000 in employee entitlements, including wages, penalty rates, and superannuation, in relation to four young former staff members.
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 in jail for individuals. The matter has been listed for mention in the Broadmeadows Magistrates’ Court on 21 February 2023.
On 1 July 2021, it became a crime for an employer in Victoria to dishonestly underpay employees or withhold their entitlements. These crimes are punishable by up to 10 years jail for an individual or a fine of over $1.1 million for companies. Wage theft offences involve deliberate and dishonest conduct. Honest mistakes made by employers who exercise due diligence in paying wages and entitlements are not considered wage theft.
Commissioner of Wage Inspectorate Victoria, Robert Hortle says, “Victorians can be confident the Wage Inspectorate is doggedly investigating wage theft reports and intends 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.”
“These are the only stand-alone, criminal wage theft laws in Australia. There are serious penalties for dishonestly withholding employee entitlements in Victoria.”
The Wage Inspectorate, in a media release says, it will not comment further on this matter while it is before the court.
Macedon is a town at the foot of Mount Macedon in the Macedon Ranges, between Melbourne and Bendigo in central Victoria with a population of 2,808 (2016 census).
