Protecting Migrants and Students in Australia from Wage Theft

Imagine arriving in a new country full of dreams, ready to work hard and create a better future, only to find your employer taking advantage of you. For many migrants and international students in Australia, wage theft is a harsh reality. From underpayment to unpaid superannuation and cash-in-hand jobs designed to dodge taxes, exploitation takes many forms. The good news? You can fight back—with knowledge, support, and action.

What Does Wage Theft Look Like?

Wage theft comes in many forms, often disguised as harmless shortcuts. For instance, Diana, a temporary visa worker, was being paid cash weekly. It seemed convenient until she realized her employer wasn’t paying her the legal minimum wage or contributing to her superannuation. Worse, there were no payslips to prove her employment.

Common Types of Wage Theft

• Underpayment: Getting less than the award or minimum wage.
• Unpaid Work: Being forced to work overtime or attend unpaid training.
• Cash-in-Hand Jobs: Receiving cash payments with no payslips or tax deductions, leaving you vulnerable to exploitation.
• Non-Payment of Superannuation: Employers failing to deposit the required 10.5% of your earnings into your super account.
• Illegal Deductions: Money taken from your pay for “mistakes,” uniforms, or meals without your agreement.

Your Rights Matter

Australia’s workplace laws protect everyone, regardless of their visa type. Here’s what you’re entitled to:

• Fair Pay: The minimum wage or award rate applies to everyone.
• Superannuation Contributions: If you earn $450 or more per month, your employer must pay 10.5% of your salary into a superannuation account.
• Payslips: You’re entitled to receive payslips showing your pay, hours worked, and tax contributions.

Carlos, an international student, was shocked when he discovered his cash-in-hand job paid far less than the minimum wage. With no payslips and no taxes withheld, he had no proof of employment. A visit to his university’s legal service helped him confront his employer and recover his unpaid wages.

How to Spot Wage Theft

Recognizing wage theft can be challenging, especially if you’re new to Australia’s workplace laws. Here are some warning signs:

• Your hourly pay is less than the legal minimum.
• You don’t receive payslips or superannuation contributions.
• You’re paid cash to avoid taxes, with no formal agreement.
• Deductions are made from your pay without explanation.

If these sound familiar, you may be experiencing wage theft.

What Should You Do If It Happens?

Anushka, a skilled worker, discovered she was being underpaid and wasn’t receiving super contributions. She gathered her payslips and used the Fair Work Ombudsman’s Pay Calculator to confirm her entitlements. With help from the Migrant Workers Centre, she recovered her lost earnings and ensured her super was paid.

Here’s what you can do:

1. Gather Evidence:
   • Keep payslips, contracts, bank statements, and messages from your employer.
   • Record your hours worked and check against your pay.
2. Check Your Super:
   • Log in to your superannuation account through MyGov to verify contributions.
3. Seek Advice:
   • Contact the Fair Work Ombudsman, your union, or a local legal service.
4. Report Wage Theft:
   • File a confidential complaint with the Fair Work Ombudsman.
   • Report unpaid super to the Australian Taxation Office (ATO).

Why Cash-in-Hand Jobs Are Risky

Cash-in-hand payments might seem convenient, but they often come with hidden dangers:

• No Payslips or Record of Employment: This makes it harder to prove your hours or pay in disputes.
• No Tax Withheld: You could face tax penalties if the income isn’t declared.
• No Super Contributions: Without a record of your wages, employers often skip paying superannuation.

While cash jobs aren’t illegal, both you and your employer must still meet tax and workplace obligations. If you’re unsure, seek advice from the Fair Work Ombudsman.

How to Protect Yourself

Diana’s experience taught her the importance of staying informed. “I wish I had checked my pay against the legal rate earlier,” she says. Simple steps like these can protect you:

• Ask for a written contract before starting work.
• Verify your hourly rate using the Fair Work Pay Calculator.
• Check your super contributions regularly through MyGov.
• Keep records of hours worked and payments received, even if you’re paid in cash.

Where to Get Help

If you suspect wage theft, don’t hesitate to reach out for help:

• Fair Work Ombudsman: Offers free advice and a confidential complaints process.
  • Visit: Fair Work Ombudsman
• Australian Taxation Office (ATO): For unpaid super or tax concerns.
  • Visit: ATO Unpaid Super Help
• Migrant Workers Centre: Advocacy and support for migrants.
  • Visit: Migrant Workers Centre
• University Legal Services: Check your university for free legal advice.
• Community Legal Centres: Localized, often free assistance.
  • Visit: Community Legal Centres Australia

Debunking Myths About Wage Theft

• Myth: Reporting wage theft will affect your visa.
  Fact: Complaints to the Fair Work Ombudsman are confidential and will not impact your visa status.
• Myth: Cash-in-hand jobs are illegal.
  Fact: Cash jobs are legal, but employers must still meet tax and workplace obligations.

Wage theft doesn’t just cost you money—it robs you of dignity and fairness. Whether it’s underpayment, unpaid super, or cash-in-hand exploitation, you have the power to fight back. Carlos, Diana, and Anushka all reclaimed what they were owed, proving that action and support can make a difference.

Stay informed, keep records, and don’t hesitate to ask for help. You deserve fair pay, proper benefits, and respect in the workplace. Together, we can ensure every worker in Australia is treated with the fairness they deserve.