Report warns that wage theft, inadequate Right to Disconnect policies are driving talent away
Employees across Australia are still suffering from wage theft and Right to Disconnect policy gaps, according to a new report, which urged employers to "address these fundamentals" or risk losing talent.
Rippling's survey among 1,000 Australian employees revealed that 43% are still underpaid, accidentally or otherwise, within the past year.
It also found that 26% of employees said their workplace still has no clear policy guaranteeing off-hours protection, even after the implementation of Australia's Right to Disconnect law.
"Australian workers will no longer tolerate the basics - like timely pay - being mishandled. From wage theft to incomplete Right to Disconnect policies, businesses risk losing talent if they don't address these fundamentals," said Matt Loop, VP and Head of Asia at Rippling, in a statement.
"At the same time, closing the employee expectation gap in 2025 means creating workplaces that offer real flexibility, meaningful growth, and well-being beyond token perks, all while connecting individual roles to a broader business purpose."
The hardline stance among employees when it comes to wage theft comes in the wake of its impact on their lifestyles. According to the report, 41% of underpaid employees dipped into their savings, which delayed financial milestones.
Another 37% said they cut back on essentials and/or postponed major purchases, while 29% relied on family or friends to stay afloat.
Research from Rippling last year revealed that Australian workers are losing nearly $850 million annually due to wage theft, which a new legislation criminalised this year.
This means an employer may have committed a criminal offence if they have intentionally done something that results in employees not receiving their wages or paid leave entitlements on or before the day they were due.
"The offence only applies to intentional underpayments that happen after these provisions take effect. This includes where they're part of a course of conduct that started before the provisions take effect," the Fair Work Ombudsman said on its website.
Penalties resulting from intentional wage theft for organisations may reach three times the value of the underpayment, or $7.825 million in fines.
Loop previously told HRD that the legislation brings a "new level of scrutiny for organisations," as well as a new "significant compliance risk" for them.
"Organisations must therefore ensure their operations are in good shape to keep up with these changes. A robust payroll system, coupled with an effective HR system, can mitigate errors and ensure compliance with legal regulations, expediting the detection and resolution of any issues that arise," he told HRD.
Meanwhile, Rippling's report found that 26% of employees say their workplace has yet to implement off-hours protection in the wake of Australia's Right to Disconnect law.
The lack of off-hours protection comes amid confusion among employers over the legislation.
The Right to Disconnect law allows employees to refuse out-of-hours contact from their employer unless that refusal is unreasonable. However, employers across the country have called out the legislation as "deeply confusing."
"At the very least, employers and employees will now be uncertain about whether they can take or make a call out of hours to offer an extra shift," said Innes Willox, chief executive of the Ai Group, in a statement.
Employers in a previous Indeed survey believe that the following reasons could warrant an after-hours contact:
Urgent project deadlines (55%)
Correcting an error (42%)
Personal matters (32%)
The Right to Disconnect in Australia also elevated expectations for workplace flexibility, according to Rippling's report. It found that 34% of employees would reconsider joining an organisation that lacks hybrid options.
More than four in 10 employees also said they would reconsider joining a company if they are expected to be in the office five days a week (42%) and if the company did not prioritise work-life balance (46%).
To address this, Rippling said effective policies must "go beyond lip service."
"Employees look for genuine commitment to work-life balance, including a culture that respects after-hours boundaries," it said. "Aligning flexible work structures with operational needs can boost employee satisfaction while preserving productivity."
