Unscrupulous employers may face jail under new laws for exploiting migrants

Under the new laws, people running labour-hire companies face up to three years' jail time if laws are flouted.

(stock image) A Queensland cafe has been fined for exploiting a foreign worker. Source: AAP

Indian migrant Pawanjeet Heir worked at an Indian restaurant in Adelaide for over two years without receiving any pay in a devious cashback scheme. She even had to pay tens of thousands of dollars to her employer who issued threats of deportation.

In 2015, her appendix burst while she was at work, but wasn’t allowed to go to a hospital before she finished her work, causing her multiple medical complications, Fairfax Media reported earlier this year.

"He would say: 'You go to immigration, nothing is going to happen to me as I am citizen of this country, but they will definitely deport you back to India'," said Ms Heir.

Now in a bid to crackdown on dodgy employers exploiting migrant workers, South Australia has passed laws that would impose tougher penalties, including jail time for violation of the law.

South Australia’s Employment Minister Kyam told the state Parliament unscrupulous operators exploiting workers were able to quickly wrap up a company and start a new business when under scrutiny.

He said in one case a worker lost his finger and company wrapped up its operations and the authorities were not able to take any action against the company because it couldn’t be contacted, the ABC reported.

He said there were many such companies involved in the rampant exploitation of workers and tax evasion.

The new laws in South Australia mean all labour-hire companies have to be licenced and those found flouting the labour laws or evading tax will face up to three years in jail.

Workers’ unions are calling for nationwide labour hire reforms.

In March last year, a Senate Committee released a scathing report documenting the abuse of temporary visa system for overseas workers.

According to Fair Work Ombudsman, workers on temporary visas are exploited at an alarming rate, particularly those from non-English language background.

The legislation means companies operating in South Australia must be licensed and will face tougher penalties, including jail time, if they flout the law.

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