The Grattan Institute has released a report analysing the exploitation of migrant workers in Australia.

The report finds widespread exploitation of migrant workers reporting multiple types of labour abuse, with a particular focus on the extensive underpayment of wages:

• Between 5 per cent and 16 per cent of employed recently arrived migrants are paid below the national minimum wage, and between 1.5 per cent and 8 per cent of recent migrants are underpaid by at least three dollars an hour.
• Recently arrived migrants are 40 per cent more likely to be underpaid than long-term residents, even after accounting for the fact that migrant workers are typically younger, and work in less-skilled jobs in industries where exploitation is more common.
• Young workers are more likely to be underpaid: 20-30 year-olds are almost six times more likely than 30- 40 year-olds to be underpaid by more than $3 per hour vis-a-vis the minimum wage.
• The likelihood of underpayment is higher for less-skilled workers; workers in agriculture, hospitality, and other services; and those with fewer qualifications.
• Workers who are not union members are 65 per cent more likely to be underpaid than union members, after accounting for age, skill, industry, and other characteristics.

The report highlights several common forms of wage theft, including underpayment of wages, unpaid superannuation, unpaid penalty rates, unpaid leave, cashback arrangements, and excessive deductions for accommodation and transport.

The report emphasises that when the underpayment of wages is present, other forms of exploitation are likely. It notes the presence of various other forms of labour abuse, including excessive work hours, racism and gender discrimination, passport confiscation, bullying, sexual assault, and poor occupational health and safety.

The report suggests three sets of reforms are needed to reduce the exploitation of migrant workers:

• Visa rules must be reformed to reduce the vulnerability of migrant workers. For example, the report suggests temporary skill-shortage visas should be made portable so that migrants can flee exploitative employers.
• Workplace and migration laws should be better enforced and strengthened to reduce exploitation. The report highlights how few employers are caught for wage theft, and that penalties are too small.
• The report agues greater protection must be granted to migrants who need to reclaim lost wages. For example, Migrant Workers Centres should be established in each state, funding for community legal centres should be boosted, and the Fair Entitlement Guarantee should be extended to migrant workers.