Increase to penalties for breaches of the Fair Work Act

In accordance with its budget policy, the Government has increased the value of Commonwealth penalty units from $110 per unit to $170 per unit. This represents the first penalty unit increase since 1997.

This means that penalties for breaches of the Fair Work Act 2009 (Cth) have increased. As a result, the maximum penalty per breach that may apply against a corporation has increased from $33,000 to $51,000, and for individuals from $6,600 to $10,200.

The new penalty unit value will only apply to breaches that occur on or after 28 December 2012. This means that the prior penalty unit value of $110, will continue to apply to proceedings which were commenced prior to 28 December 2012 or offences committed prior to 28 December 2012.

Under the legislation, penalty unit values will be reviewed every three years.

If you would like more information about increases in penalties or the application of penalties generally, please contact National Workplace Lawyers on +61 2 9233 3989. 

National Workplace Lawyers

Note — this is for information purposes only and does not purport to be comprehensive or to render legal advice.