Exploitation of migrant workers found to be widespread in Australia

Human Rights Research Center
May 15
3 min read

May 15, 2026

HRRC expresses concern over a recent report claiming that two-thirds of migrant workers in Australia are being legally underpaid. The exploitation of this vulnerable workforce must be immediately investigated by the Australian government, with stronger protections and guidelines introduced to ensure that all workers receive legal wages and fair treatment.

Two-thirds of migrant workers in Australia are legally underpaid [Image source: Pixabay]

A survey of more than 10,000 migrant workers employed in Australia on temporary visas found widespread underpayment across the country, pointing to systemic exploitation of non-permanent workers.

The report, Off The Books: Inside Australia's Hidden System of Migrant Worker Exploitation, published by the Migrant Justice Institute, states that two-thirds of workers on temporary visas are paid less than the amount they are legally entitled to receive. According to the report, this results in approximately $61 million in unpaid wages every week.

The survey asked respondents – 80% of whom were international students – to provide detailed information about their employment experiences. Researchers collected data on workplace conditions, pay, and treatment by employers. The published results prompted Australian Anti-Slavery Commissioner Chris Evans to state that a system has been created that “produces vulnerability at scale and enables willing employers to exploit it.”

The research also found that a significant number of employers were misusing Australian Business Numbers (ABNs). ABNs are 11-digit identifiers primarily used for businesses to identify themselves to the government. However, some employers have been using them to engage migrant workers as independent contractors when they should legally be hired as employees.

This practice, known as “sham contracting” is illegal and allows employers to avoid contributing to legally required retirement schemes, providing employees with standardised leave, and providing them full financial compensation. The practice not only discriminates against workers but also disadvantages businesses that comply with the law.

While much of the report focused on the financial issues being faced by migrant workers, it also identified a link between underpayment and a higher likelihood of poor working conditions. Employees in underpaid positions were more likely to report working for long periods with no breaks, being made to work in unsafe conditions and being tricked into a job that was worse than promised.

The evidence presented in the report suggests that systemic failures have allowed exploitation to occur at a massive scale. The Australian government must urgently review the system at every stage and immediately implement a framework that firmly supports migrant workers and creates an environment in which every employee receives the wages they are legally entitled to.

Glossary (https://dictionary.cambridge.org/)

Anti-Slavery — actions or policies intended to prevent or oppose slavery and exploitation.
Compliant — acting according to rules, laws, or requests.
Entitled — having the right to receive or do something.
Exploitation — treating someone unfairly in order to gain an advantage from their work.
Identifiers — numbers, names, or features used to recognise someone or something.
Independent contractors — people or companies that supply goods or services to another company.
Non-permanent — not lasting forever or not intended to be permanent.
Sham contracting — illegally treating employees as independent contractors to avoid legal responsibilities.
Underpaid — paid too little for the work you do.
Vulnerable — easily harmed, influenced, or attacked.
Widespread — existing or happening in many places or among many people.

Sources

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Exploitation of migrant workers found to be widespread in Australia

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