Making wage compliance accessible to every Australian small business
Australia's Modern Award system is one of the most complex in the world. FairShield uses technology to make compliance simple, affordable, and provable -- so small business owners can focus on running their business, not decoding industrial law.
The law changed on 1 January 2025
Criminal wage theft is now law
On 1 January 2025, the Closing Loopholes No. 2 Act came into effect, making intentional underpayment of employee wages and entitlements a criminal offence under the Fair Work Act 2009. Employers who intentionally underpay workers face up to 10 years imprisonment for individuals and fines of up to $8.25 million for companies.
The scale of the problem
Wage underpayment is not just a big-business problem. The Fair Work Ombudsman recovered $473 million for underpaid workers in 2023-24 alone. Since 2020, large corporations have self-reported and back-paid $877 million to affected employees. An estimated 160,000+ workers were impacted in the last reporting period.
The complexity of Australia's 121 Modern Awards -- with their variable penalty rates, shift loadings, overtime rules, and state-specific conditions -- means that even well-intentioned employers frequently get it wrong.
Why small businesses are at risk
Large employers have dedicated HR and payroll departments. They use enterprise payroll systems with built-in award interpretation. Small businesses typically rely on a bookkeeper, a basic payroll tool, and their own understanding of the award -- which is often incomplete or outdated.
The new criminal provisions do not distinguish between deliberate exploitation and honest mistakes. Intentcan be inferred from a failure to take reasonable steps. That's where the Voluntary Code comes in.
The Voluntary Small Business Wage Compliance Code
The Voluntary Small Business Wage Compliance Code was introduced alongside the criminal wage theft provisions to give small businesses (fewer than 15 employees) a pathway to demonstrate good faith compliance.
Under the Code, a small business employer who has taken reasonable stepsto comply with their pay obligations will not be subject to criminal prosecution for underpayment, even if errors are later discovered. The Code essentially provides a “safe harbour” for employers who can demonstrate they made genuine efforts to get it right.
What counts as “reasonable steps”?
- Identifying the applicable Modern Award(s) for your employees
- Regularly checking pay rates against current award rates
- Using reliable payroll systems or professional assistance
- Keeping accurate records of hours worked and pay
- Seeking advice when unsure about entitlements
- Promptly correcting any errors once identified
- Conducting periodic audits or compliance checks
The FWO Commissioner has explicitly endorsed proactive auditing followed by remediation as evidence of Code compliance. FairShield produces exactly this evidence.
How FairShield helps
Evidence of reasonable steps
Our Code Compliance Certificate provides documented evidence that you have proactively checked your payroll against applicable Modern Awards. This is exactly what the Voluntary Code requires.
Actionable findings
Not just a pass/fail. Every finding includes the exact award clause, the expected rate vs. what was paid, and the dollar amount to remediate. Your bookkeeper can action the report immediately.
Affordable for SMEs
Traditional compliance audits cost $5,000-$20,000 and take weeks. FairShield starts at $299 for a one-off check and $99/month for ongoing protection. Because compliance should not be a luxury.
Our team
We bring together expertise in employment law, payroll technology, and small business operations.
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Founder & CEO
Background in employment law and technology. Passionate about making compliance accessible to every small business owner.
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Head of Compliance
Former Fair Work Inspector with 15+ years of experience in Modern Award interpretation and enforcement.
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CTO
Full-stack engineer with experience building fintech and regtech platforms. Leads the compliance engine development.
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Head of Partnerships
Former BAS agent and practice manager. Builds relationships with bookkeepers, accountants, and franchise groups.
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Protect your business. Protect your people.
Get your Code Compliance Certificate and know exactly where you stand. Start your compliance check today.