The Senate Education and Employment References Committee is conducting an inquiry examining the new criminal offence of failing to pay certain amounts as required, introduced as part of the Fair Work Legislation Amendment (Closing Loopholes) Act 2023.

The criminal offence commenced on 1 January 2025 and applies where a national system employer intentionally engages in conduct that results in an underpayment of employee entitlements. The inquiry is directed to assessing the effectiveness of this framework and any related matters, including whether the criminal offence is appropriately targeted and operating as intended.

Australian Industry Group has lodged a written submission to the inquiry, focussed on the offence, rather than broader workplace relations compliance, civil penalties or enforcement.

It builds on Australian Industry Group's submission to the Closing Loopholes statutory review, which is also currently underway.