Employers, Take Note: New Wage Payment Rules Are on the Horizon

Introduction

A new employment law change has made its way through Parliament, with the Crimes (Theft by Employer) Amendment Bill passing its third reading. This bill will create a clearer legal obligation for employers to pay employees correctly and on time, ensuring all wages, salaries, and entitlements are handled fairly.

For businesses, this highlights the need to review payroll processes, ensure compliance, and avoid potential risks associated with underpayment or unintentional errors.

What Employers Need to Know

The bill reinforces an employer’s responsibility to pay employees what they are owed, including wages, overtime, holiday pay, and agreed entitlements. While most businesses already do this correctly, this change serves as a timely reminder that payroll accuracy should be a top priority.

Key areas employers should review include:

• Payroll Systems & Processes – Ensuring wage payments are accurate and processed correctly each pay cycle.
• Employment Agreements – Clearly outlining pay structures, overtime conditions, and entitlements.
• Leave & Deductions – Confirm that holiday pay, sick leave, and deductions comply with legislation and company policy.
• Record-Keeping – Maintaining clear, detailed records of hours worked and payments made.

Why This Matters for Your Business

The proposed legislation emphasises transparency and accountability in wage payments. Employers need to be proactive in ensuring:

• Employees are paid correctly – This includes base wages, allowances, overtime, and other contractual entitlements.
• Pay cycles are met consistently – Avoid delays or errors that could cause financial strain on employees.
• Payroll compliance is a focus – Reviewing payroll policies now can prevent issues down the track.

For businesses, this is an opportunity to review and refine payroll practices, ensuring they align with best practices and meet legislative requirements.

How HR Can Help

HR professionals play a key role in ensuring compliance with wage payment obligations. Some practical steps include:

• Auditing current payroll practices – Identifying gaps or inconsistencies before issues arise.
• Providing payroll training – Ensuring payroll teams and managers understand wage payment obligations.
• Implementing clear policies – Making sure employment agreements and payroll processes reflect best practices.
• Creating a reporting system – Encouraging open communication so any payroll concerns are raised and resolved quickly.

Final Thoughts

With this bill progressing through Parliament, it’s a timely reminder for employers to review payroll processes and ensure all wage payments are handled correctly. By staying ahead of legislative changes and prioritising payroll compliance, businesses can maintain trust, avoid unnecessary risks, and ensure their workforce is paid fairly and on time.

If you’re unsure whether your payroll processes are up to standard, now is the time to review them. Need help? Reach out, and let’s make sure you’re set up for success.