Submission to Senate Inquiry on director liability for wage underpayments

The AICD has made a submission to the Senate Standing Committees on Economics Inquiry into the unlawful underpayment of employees' remuneration.

The AICD strongly condemned businesses that engage in the deliberate underpayment of wages and rely on the so-called “wage theft” model. We noted that potential accessorial liability for directors already exists for wage underpayment and distinguished between directors who also function as managers and non-executive directors. The AICD cautioned against the further extension of liability to directors other than in cases where a director has intentionally participated in the underpayment with knowledge of its occurrence.

The Senate Committee has now delayed its Inquiry due to the COVID-19 crisis.