The objective of this legislation is to act as a strong deterrent to wage theft.
The Victorian union movement says it will push for prosecutions through the newly-created Wage Inspectorate Victoria, a position which will have the power to investigate and prosecute cases of wage theft.
Inspectors will be able to enter workplaces of a business owner to inspect and seize documents.
Anchalee Suwan is a migrant worker and student born in Thailand, who worked in Victoria for a decade and left the country for Japan before the pandemic.
Ms Suwan told SBS News she was a victim of underpayment.
"As an international student, you pay higher fees to study and you have 20 hours per week to find a job, by law and by my visa descriptions. At the beginning I could not really communicate in English so had to find a job that had less English communication. I got my first job as a kitchen hand. I think this law is very important for international students to cover life costs."
The new offences apply to employers and individuals within an employer.
An individual can be charged with an offence if they are an 'officer' of an employing entity.
The definition of 'officer' 'is broad and not limited to owners and company directors.
The definition varies depending on entity type, but generally includes individuals who have key decision-making capabilities including company directors, office holders or partners.
It is not yet fully clear how the new law will interact with the existing Fair Work Act 2009 in practice, but it is expected that employers could be investigated by both the Wage Inspectorate and the Fair Work Ombudsman in relation to the same conduct.
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