The state Labor government on Saturday committed to introducing new laws if re-elected in November, with some facing the prospect of 10 years’ jail if found guilty.

Under the proposed new laws, employers who deliberately withhold wages, superannuation or other employee entitlements, falsify employment records, or fail to keep employment records will face fines of up to $190,284 for individuals, $951,420 for companies and up to 10 years’ imprisonment. 

“I support it, we have seen evidence in Bendigo of business owners who have knowingly ripped off their workers. This isn’t a mistake of admin (sic) - it’s part of their business model,” she said.

The federal shadow assistant minister for workplace relations said contract cleaning, hospitality, the agriculture industry and labour hire were areas for concern locally.

“Good companies have spoken to me about the frustration of losing contracts to companies who don't pay workers properly,” she said.

As part of the proposal, wage theft offences will be investigated and prosecuted by the Victorian Wage Inspectorate – a new employment watchdog the state government is establishing to promote fair industrial relations practices and better education, compliance and enforcement of state-based employment laws. 

A plumber who told his labourer to “seriously, f**k off” when he inquired about money owed to him was penalised $21,500 in February.

The worker was underpaid when he was employed by Pulis Plumbing to perform work in the Bendigo, Melbourne and Geelong areas between September and December, 2014.

Additionally, in April a trolley collection subcontractor was fined more than $230,000 for underpaying two refugee migrant workers in Bendigo.

Jobanjeet Singh and his company Joban’s Trolley Collection Pty Ltd underpaid two trolley collection workers more than $29,000 in a six-month period in 2015.

In 2016, a former Bendigo restaurant boss who said he would reimburse an underpaid worker only if she swore she had been kidnapped and forced to work for him had his salary docked until 2018 to pay off related court fines.

This was almost 40 per cent of the workers’ total entitlements over that period.

Premier Daniel Andrews said: “Every worker has the right to get a fair day’s pay for a fair day’s work – the simple fact is underpaying workers is theft and it’s time it’s treated like that in our laws.” 

Minister for Industrial Relations Natalie Hutchins said: “The Wage Inspectorate will help protect all workers, particularly our most vulnerable, and ensure compliance and enforcement with employment conditions across Victoria.”