Wage underpayment, migrant worker coercion may soon become criminal offences: Bill

The Australian government has proposed new criminal offences and civil penalties for employers who may misuse migration law to coerce migrant workers for work that violates their visa conditions. The Department of Home Affairs has sought feedback from residents till 16 August.

Indians in Australia

Source: Getty Images/Peter Cade

Highlights
  • Migration Amendment (Protecting Migrant Workers) Bill 2021 introduced
  • Bill seeks to penalise breach of provisions in Migration Act or Fair Work Act 2009
  • Proposal to make Australian Border Force work with employers, labour-hire companies
The Australian government has released an exposure draft of the Migration Amendment (Protecting Migrant Workers) Bill 2021 to prevent migrant workers from exploitation.

According to the proposed Bill, an employer can face  for coercing migrant workers towards accepting work arrangements that breach their work-related visa conditions. Also, migrant workers can’t be forced to accept conditions that adversely affect their immigration status.

Announcing the penalties proposed to protect migrants from coercive exploitation, Immigration Minister Alex Hawke stated in a media release that this legislation was "timely" as Australia works on its economic recovery from COVID-19.

“We want to ensure Australia maintains a strong reputation as a destination of choice for working holidaymakers, students and skilled migrants.

“We know the majority of Australian businesses and employers do the right thing, but there are still a small number of unscrupulous employers who find ways to exploit migrants,” he stated.
Indians in Australia
The proposed Bill says an employer can face criminal charges for coercing migrant workers to accept work arrangements that breach work-related visa conditions. Source: Getty Images/xavierarnau
Radhika Reddy, Principal Solicitor Legal at On London and Reddy Law and President Australia India Business Council (AIBC) ACT Chapter, elaborated on the proposed penalties.

“If an employer forces, or exerts undue influence/pressure on a non-citizen to accept or agree to a work arrangement, and by doing this the employee breaches a work-related condition, or there are reasonable grounds to believe the employee has breached the work-related condition, then the employer has committed an offence. The employer could be subjected to imprisonment for two years,” Ms Reddy told SBS Hindi.
She added that incidents involving employers exploiting their employees are not uncommon.

“Some employers pay salaries in full on paper to show they are complying with the law. But they take back most of the salary in cash as per their prior arrangements. Employees don’t have the option to say no as they want their job and permanent residency,” Ms Reddy said.

“This is a common practice in sectors such as IT and hospitality. The government should really revamp their monitoring process of employers and their businesses. They should go unannounced and inspect businesses.

“Businesses can fudge their account books if they are told in advance about the inspection date. There should be a way where employees can air their concerns without fear of losing their employment and prospects with other employers,” Ms Reddy added.
Ms Reddy advocated the need for balancing the law in order to protect employers as well.

“Even employers need protection and support from the government. Currently, they are going through a tough phase due to the ongoing coronavirus pandemic,” Ms Reddy said. 

“Essentially, the proposed change to the Bill is also to ensure that Australia’s reputation as a preferred destination for skilled migrants is protected. Employees will have the assurance that the government is taking tougher measures to ensure that employees are not exploited,” she added.

Vish Viswanathan from the AIBC said the proposed legislation will send a strong message to businesses exploiting students and migrants.

“Such a step by the federal government will pave the way for a smoother economic recovery from the impact of COVID-19 on businesses in Australia,” he said.

Residents can provide their feedback on the proposed Bill to the Department of Home Affairs by 16 August.

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3 min read
Published 27 July 2021 6:08pm
Updated 28 July 2021 1:38pm
By Sahil Makkar

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