Exploitation of Migrant Workers: ABNs as a New Tool for Underpayment

A concerning trend is emerging in the exploitation of migrant workers in Australia, with employers increasingly leveraging Australian Business Numbers (ABNs) to circumvent fair wages. This shift away from cash-in-hand payments marks a significant change in how businesses underpay their staff, particularly among those on temporary visas.

International Students Among the Most Affected

Mai, an international student in Canberra, recently shared her experience of being underpaid in her hospitality job. Despite her initial excitement about independence, she found herself working long hours for a flat rate that fell well below the minimum wage. With her employer frequently demanding her presence at short notice, Mai struggled to cover basic living expenses, revealing that two-thirds of migrant workers are underpaid under the Fair Work Act.

Research Highlights Systemic Issues

According to Associate Professor Bassina Farbenblum, who leads the Migrant Justice Institute, the exploitation of temporary visa holders often goes hand in hand with other forms of mistreatment, such as long working hours without breaks and even threats of reporting to immigration authorities. Her recent study indicates that international students alone could be losing around $3.18 billion annually due to underpayment. This alarming figure underscores the gravity of the situation facing many migrant workers.

Government Measures and Low Reporting Rates

In response to these issues, the Department of Home Affairs introduced a temporary visa in 2024, allowing individuals to stay in Australia for up to a year to pursue claims of workplace exploitation. Additionally, a pilot program promises that reporting exploitation won't lead to visa cancellations for those who have breached work-related conditions. Despite these protections, there are widespread concerns about low reporting rates among temporary visa holders, leaving many victims vulnerable to ongoing exploitation.

Source: www.abc.net.au