November 21, 2017
Exploitation of international students and backpackers in Australia is endemic and severe, a joint study by two Sydney universities has found.
The study, by researchers from the University of NSW and the University of Technology, found that one in three international students and backpackers were being paid about half the legal minimum wage.
“Wage Theft in Australia” was compiled from survey responses from 4322 temporary migrants from 107 countries in all States and Territories.
It was authored by Dr Laurie Berg, a senior law lecturer at UTS, and Bassina Farbenblum, a senior law lecturer at UNSW Sydney.
Ms Farbenblum said the study dispelled the myth that underpayment occurred simply because the workers don’t know the minimum wage.
“We found the overwhelming majority of international students and backpackers are aware they are being underpaid. However, they believe few people on their visa expect to receive the legal minimum wage,” she said.
The study found 86 per cent of international students and backpackers earning up to $15 per hour believe that many, most or all other people on their type of visa were paid less than the basic national minimum wage.
Co-author Dr Laurie Berg said wage theft was not confined to fruit and vegetable picking or convenience stores, nor was it confined to any nationalities.
“A fifth of every nationality was paid around half the legal minimum wage. For almost 40 per cent of students and backpackers, their lowest paid job was in a cafe, restaurant or takeaway,” she said.
Dr Berg said the study also showed that international students and backpackers faced conditions that could constitute criminal forced labour.
In 91 cases, respondents had had their passports confiscated by employers; 173 respondents were required to pay upfront “deposits” of up to $1000 to secure a job in Australia; and 112 respondents had been asked to pay money back to their employer in cash after receiving their wages.
The study also found 44 per cent of overseas workers were paid in cash, including two-in-three waiters, kitchenhands and food servers. Half never or rarely receive a payslip.
The authors said the study raises urgent concerns about the actions and resourcing required of government, business, unions and other service providers to address the scale of non-compliance.
The study found:
- A quarter of all international students earn $12 per hour or less and 43 per cent earn $15 or less in their lowest paid job
- A third of backpackers earn $12 per hour or less and almost half earn $15 or less in their lowest paid job
- Workers from Asian countries including China, Taiwan and Vietnam receive lower wage rates than those from North America, Ireland and the UK. Chinese workers are also more likely to be paid in cash
