Secret payments between unions and employers will be criminalised, according to the Federal Government.

Prime Minister Malcolm Turnbull recently announced the introduction of new laws that will criminalise payments or other benefits passed between employers and unions that could have a corrupting influence. 

This decision was made after the Royal Commission into Trade Union Governance and Corruption found any payments between unions and employers is likely to corrupt union officials. 

The new bill will stipulate that penalties will apply equally to employers and unions. The person offering or making the benefit will be subject to the same penalties as the person soliciting or receiving it.

According to the Government, those who make, receive, solicit or offer payments or benefits intended to corrupt a union official will be subject to a maximum 10 years in prison, up to a $900,000 fine for an individual or $4.5 million fine for a company.

Also, penalties for payments or benefits other than specified legitimate payments, such as genuine membership fees will be two years in prison, up to a $90,000 for an individual or $450,000 for a company.

Moreover, any legitimate financial benefits obtained by an employer or union during enterprise agreement negotiations will be required to be disclosed to employees.

Further, if money changes hands between an employer and an union, both parties have will be required to honestly disclose these payments to their employees and members.

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