The year 2024 provided numerous examples of underpayment and wage theft violations, with a number of employers facing repercussions. Yet in 2025, the consequences for these indiscretions will be much harsher – with jail time not off the table.

In this episode of The HR Leader Podcast, host Jerome Doraisamy speaks with Smart WFM founder and chief executive Jarrod McGrath about what the new wage theft criminalisation laws – which are set to come into place next year – mean for Australian HR leaders and senior organisational executives.

McGrath describes the vital function that correct payroll systems have when it comes to underpayments, with the vast majority of these contraventions being a by-product of flawed payroll systems that permeate errors. McGrath also expounds on the widespread trust issue that can arise as a result of underpayment of even a single employee, as workers often lose faith in their employer when incidents like this take place. Finally, McGrath dives into the intricate details of the new laws that will, without a doubt, have a huge effect on the job role of HR teams in 2025.