A national review has discovered over $300,000 in unpaid wages owed to migrant workers in regional hospitality venues, as experts caution that underpayment and exploitation continue to be a widespread issue throughout Australia.
More than half of the cafes, pubs, and restaurants inspected were found to be underpaying or exploiting migrant workers, highlighting a deeply ingrained problem in regional hospitality.
The Australian Border Force operation, which targeted over 300 regional hospitality venues in a seven-month period, revealed numerous violations of sponsorship rules, with workers being underpaid and some being scheduled for excessive hours.
During surprise visits, ABF inspectors also found cases where some employers were wrongfully deducting money from the pay of migrant workers.
In one instance, a regional Victorian restaurant had to repay more than $50,000 for failing to pay penalty rates to a sponsored worker over two years. In NSW, a venue had to reimburse over $31,000 in wages and superannuation and was banned from sponsoring additional workers for six months.
The results from Operation Odin provide a glimpse into the conditions faced by migrant workers in parts of regional Australia, where labor shortages are severe and oversight can be limited.
Chief executive of the Migrant Workers Centre, Matt Kunkel, expressed that the widespread exploitation was not surprising, particularly in regional areas attracting overseas workers seeking opportunities in Australia.
Following the operation, 41 businesses lost their ability to sponsor migrant workers or hire new overseas workers, while 35 businesses received compliance notices. Over $300,000 in unpaid wages has been recovered thus far, with investigations ongoing into at least 80 regional businesses.
Advocates emphasize that challenging exploitation can be difficult, especially for workers whose visa status is tied to their employer or who fear losing income, housing, or the ability to remain in Australia.
Kunkel welcomed the stricter laws introduced in 2024 by the Albanese government, criminalizing the use of a worker’s visa status for exploitation and providing protection to migrants who report abuse.
He stressed the importance of educating migrant workers about their rights and protections to combat exploitation effectively.
Labor MP Julian Hill acknowledged that the ABF operation indicated progress but warned of continued enforcement to address exploitative practices by employers.
ABF Commander John Taylor described the operation as one of the largest efforts to tackle migrant worker exploitation, with unannounced inspections conducted across all states and territories. Further inspections are anticipated, with businesses under monitoring for up to five years after sponsoring workers.
