Australia: Employers misclassify & underpay migrant workers using unique business identification number, study finds
A study commissioned by the Commonwealth attorney-general's department found that employers in Australia are increasingly using Australian Business Numbers (ABNs) to misclassify and underpay migrant workers, avoiding paying entitlements under the Fair Work Act.
The study found that international students alone may be subjected to wage theft of around USD3.18 billion per year. The study also found that the more people were underpaid, the more likely they experienced conditions like having their passport confiscated, working long hours with no breaks, and threats of harm or violence.
The Department of Home Affairs introduced a temporary visa in 2024 to allow people to remain in Australia for up to 12 months to pursue a workplace exploitation claim after their previous visa had expired, but there are concerns that very few temporary visa holders ever report workplace exploitation.