Paying cost of cash jobs
YOUNG workers should be wary of cash-inhand payments from their employers because it can deny them annual leave, sick leave and other entitlements.
Working for cash-in-hand payments also may have longer-term ramifications to their finances because no superannuation is paid.
National research commissioned by the ACTU and Victorian Trades Hall Council finds one in four young workers are being paid cashin-hand, a ‘‘ black-market cash economy’’ that some employers use to avoid their obligations.
It can mean workers dodge taxes but also lose out in other non-monetary ways.
ACTU president Ged Kearney says that cash-in-hand work is part of a trend towards insecure work.
‘‘ There is a real concern that young workers are being told they must work cash-in-hand by employers if they want to get the job,’’ Kearney says.
‘‘ The majority of businesses do the right thing and pay the taxes they are required to.
‘‘ They should be outraged because it means they are forced to compete with companies that have an unfair advantage.’’
The research finds 13 per cent of all workers have been paid cash-in-hand in the past three years and 48 per cent had not been paid superannuation.