Deputy unveils Pay Rate Builder to tackle wage compliance

A new compliance law now classifies intentional wage theft as a criminal offence in Australia, prompting businesses to enhance their payroll operations.

In response to these legal developments, Deputy has introduced the Pay Rate Builder, a tool designed to assist businesses in managing compliance with Australia's Industry Awards and enterprise agreements. The introduction of this feature follows the implementation of stricter underpayment laws, bringing Australian businesses under increasing regulatory scrutiny.

Pay Rate Builder offers a range of capabilities, allowing businesses to create customised pay rates, automate allowances and entitlements, and align pay rules with current Fair Work requirements. This tool offers flexibility, particularly within the context of Australian pay conditions, by providing the ability to add, edit, and prioritise pay components.

Deepesh Banerji, Chief Product Officer at Deputy, emphasised the importance of the new tool: "Compliance is one of the biggest challenges facing businesses in the shift work economy, and we're committed to solving it with technology. With Pay Rate Builder, we're making it easier for businesses of all sizes to confidently manage pay rules and meet Australia's complex and evolving regulations. This tool is built for flexibility - whether customers want to use our modern award interpretations, modify existing pay rules, or create their own from scratch (to power EBAs or union requirements), we empower them to remain compliant while reducing manual work."

The necessity for such a solution has intensified with the Fair Work Legislation Amendment (Closing Loopholes) Act. This legislative change reinforces significant penalties for underpayment of workers, underscoring the requirement for businesses to ensure payroll accuracy and compliance.

Frank Chilia, General Counsel at Deputy, highlighted the implications of the recent legislative update: "The future of shift work depends on businesses getting compliance right - not just to meet legal obligations, but to build trust with employees and reduce financial risk." 

He added, "With the recent changes to underpayment laws, businesses must be extra vigilant in their compliance practices to avoid costly fines and reputational damage. Pay Rate Builder provides the transparency and control needed to enable fair pay and compliance at scale. Whether leveraging Deputy's award interpretation engine, making custom modifications, or building pay rules from scratch, businesses now have the tools to navigate the complexities of Australia's modern awards and enterprise agreements with ease."

With these adjustments underway, Australian businesses are urged to prioritise accurate payroll processes to maintain compliance, mitigate risks associated with underpayment penalties, and foster a trustworthy environment for employees.