Cooperation agreements

An employer who self-reports conduct that could be a criminal underpayment offence can request to enter a cooperation agreement with us. We won’t refer any conduct covered by a cooperation agreement for criminal prosecution.

On this page:

What is a cooperation agreement

A cooperation agreement is a written agreement between us and someone (such as an employer, business or individual) who has told us they’ve engaged in conduct that may amount to the criminal underpayment offence.

From 1 January 2025, intentional underpayment of wages or entitlements can be a criminal offence. This doesn’t include honest mistakes.

While the cooperation agreement is in force, we can’t refer conduct outlined in that agreement for possible criminal prosecution. We may still consider civil enforcement options if necessary.

Example: Requesting to enter a cooperation agreement

A large fast food restaurant business was experiencing cash flow issues. To save money, one of the business’s store managers, Joe, intentionally didn’t pay penalty and overtime rates to his team that are required by the enterprise agreement.

Business management discovers Joe’s actions and that employees have been underpaid. The business plans to repay their employees what they’re owed. They’re concerned about possible criminal prosecution.

The business tells us what happened and that they are committed to repaying their employees and improving their payroll and time recording systems. They request to enter into a cooperation agreement with us.

What a cooperation agreement does

A cooperation agreement stops us from referring an employer for possible criminal prosecution for intentional underpayments.

It doesn’t affect any of our other powers or functions, or the powers of our inspectors. We may still consider civil enforcement options if necessary, such as a:

Eligibility for a cooperation agreement

Use our Guide to cooperation agreement Guide to cooperation agreements to learn more about the cooperation agreement process, including how to request to enter one with us.

Tip - Small business employers entering cooperation agreements

If we are satisfied that a small business employer who has underpaid an employee has complied with the Voluntary Small Business Wage Compliance Code, then we can’t, in relation to that conduct:

  • refer them for possible criminal prosecution, or
  • enter into a cooperation agreement with them.

Learn more about the Voluntary Small Business Wage Compliance Code.

We assess cooperation agreement applications on an individual basis.

We may ask for evidence to support our assessment of whether a cooperation agreement is appropriate.

We’ll consider information provided by the person, as well as other sources of information available to us.

Check our Guide to cooperation agreements Guide to cooperation agreements to learn more about the factors we’ll consider.

Request to enter a cooperation agreement

Are you an employee?

If you’re an employee and think that you may have been intentionally underpaid, please see Fixing a workplace problem for ways on how we can assist.

Each cooperation agreement is entered into between us and one party only (that is, an individual or an entity). Where multiple individuals or corporate entities may have been involved in conduct that amounts to a potential offence or related offence, separate cooperation agreements may be entered into with different persons relating to the same or similar conduct.

While a cooperation agreement is in force, we can’t refer conduct outlined in that agreement for possible criminal prosecution. We may still consider civil enforcement options.

Our online form has questions to assist you in voluntarily providing us with information so we can consider whether you’re eligible for a cooperation agreement. You’re encouraged to seek independent legal advice before voluntarily reporting to us that you may have committed an offence, including as to the information you may be providing as part of this form.

The reporting of a potential offence or related offence by a corporate entity or Commonwealth agency must be made by a person with authorisation to act on behalf of the corporate entity or Commonwealth agency.

Where a corporate entity is seeking to report on behalf of people (for example, multiple related entities or individuals), a separate form must be completed for each person.

You may be liable to a civil penalty under the Fair Work Act if you knowingly or recklessly give false or misleading information or produce false or misleading documents to the FWO in the Stage 1 – Eligibility or Stage 2 – Assessment process. It’s also a serious offence under the Criminal Code Act 1995. The FWO may terminate a cooperation agreement if satisfied that you’ve provided false or misleading information or omitted any matter or thing without which the information is misleading.

For further information regarding the cooperation agreement process and how we may use the information voluntarily provided, please see our Guide to cooperation agreements Guide to cooperation agreements.

Cooperation agreement eligibility form

Source reference: Fair Work ACT 2009, s 717A – 717G.

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