The Wage Theft Bill 2020 passed with crossbench support on Tuesday evening, meaning employers found deliberately underpaying workers face up to 10 years' jail and fines of almost $200,000. There are also fines of up to almost $1 million for businesses, with the new Wage Inspectorate of Victoria empowered to police the new legislation.

Unions and employee representative groups hailed the new laws as much-needed and long overdue, while employer and business associations and the state and federal Coalitions said the new provisions were duplicating existing laws and would likely face legal challenges.

Secretary of Ballarat Regional Trades and Labour Council Brett Edgington told The Courier employers are now held to the same account as employees - 'if you steal, you face jail.'

"For thousands of regional Victorian workers today there will be a sense of hope and optimism that they can get justice, and importantly their legally earned wages and superannuation paid back," Mr Edgington said.

"For years the only way to try and get justice and reimbursement was to bargain away your stolen entitlements through the Fair Work system, or pay a fortune for filing at Federal Court or Small Claims - an onerous path that was insurmountable for so many wage theft victims.

"Now we will see the establishment of a low cost, straight forward process for Victorian workers."

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Victorian Chamber of Commerce and Industry chief executive Paul Guerra told The Courier unnecessary and confusing state-by-state approaches would damage business environments and discourage employment.

"The Victorian Chamber does not support any failure to comply with employment laws," Mr Guerra said.

"Every employee should receive their correct entitlements; all businesses should be able to compete fairly.

"Separate 'Victoria only' penalties for not complying with Federal workplace relations legislation will damage Victoria's reputation as a great place to do business and duplicate Federal laws.

"Business and workers need a national approach. (We are) concerned about unnecessary and duplicative penalty regimes for the same conduct. The Wage Theft Legislation, passed today, creates a risk that a business could be prosecuted by both State and Federal regulators for the same conduct.

"Increased maximum penalties and the threat of jail may also discourage businesses that identify underpayments to come forward and work with the Fair Work Ombudsman to rectify these," Mr Guerra said.

Victorian Trades Hall Council secretary Luke Hilakari told The Courier, "This is momentous and pivotal for working people in Victoria, who have been saying enough is enough: it's time. Wage theft is a crime and bosses stealing wages are properly punished so that wage theft as a business model comes to an end.

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