Students bear the brunt of widespread wage theft

More than 75% of international students studying in Australia are experiencing serious wage theft, according to a recent report. Of the 5000 international students surveyed, 77% were paid below the minimum casual hourly wage. More than a quarter (26%) earned half the minimum casual hourly wage or less. This hasn’t changed since a 2016 survey was conducted.

It’s a damaging assessment of our nation’s employers and the financial future of these students and temporary migrant workers, many of whom may choose to permanently call Australia home.

Alarmingly, of the 3850 students experiencing wage theft, 62% suffered in silence. They didn’t speak out for fear of losing their job or visa.

International students aren’t the only ones susceptible to wage theft. In the past year we’ve seen several reputable businesses admit to underpaying staff. Industry Super Australia has reported in the past that one-third of eligible workers (2.4 million) are underpaid super each year, totalling $3.6 billion.

Some employees are aware they should be receiving higher wages (and paid super), but stay quiet for fear they’re complicit in breaking the law.

The student survey shows 86% who were underpaid knew the minimum wage (currently $19.84), but 62% believed they were at fault. Three in four lacked an understanding of their rights in terms of casual loadings, penalty rates and other entitlements. More than half (56%) didn’t understand their eligibility to claim the tax-free threshold (56%).

The study authors, associate professors Laurie Berg (UTS) and Bassina Farbenblum (UNSW), say Covid-19 has seen many international students lose their casual jobs. Excluded from JobKeeper and JobSeeker, many are left with no income to cover basic living expenses. “The Covid-19 shutdown has created a humanitarian crisis among international students and other migrant workers in Australia,” says Farbenblum. “Many have been unable to pay their rent and joined foodbank queues.”

The researchers say that the easing of restrictions will mean international students are in danger of becoming even more vulnerable to exploitation because of their desperation for work. This applies to wider Australia too.

If you’re not being paid properly, are not being paid relevant penalty rates or are not being paid for entitlements such as annual leave, sick leave, long service leave or redundancy, contact the Fair Work Ombudsman on 13 13 94 or a Legal Aid office. Darren Snyder