417 visa holders exploited and underpaid

A Fair Work ombudsman review into 417 working holiday visa holders has found that many backpackers were exploited by unscrupulous employers.

The two year inquiry found that 66 per cent of backpackers felt employers took advantage of 417 visa holders by underpaying them.

The survey focused on over 4000 overseas workers who completed the 88-day regional work requirement.

Six out of 10 (59 per cent) agreed that backpackers are unlikely to complain about their working conditions in case their work is not signed off by the employer.

The report also revealed that 35 per cent said they were paid less than the minimum wage and 14 per cent claimed they actually had to pay in advance to get regional work.

Another 6 per cent had to pay an employer to ‘sign off’ on their regional work requirement.

It also found that deductions from pay were common and not agreed to in writing as required by law.

The release of the report coincides with the Fair Work Ombudsman taking legal action against a Queensland mushroom farm that short-changed its workers by almost $650,000 over eight months.

Fair Work Ombudsman Natalie James said there was a risk of a black market for backpackers if the payment issues weren’t addressed.

“In particular, the desire for a second-year 417 visa can drive vulnerable workers to agree to work for below minimum entitlements and in some circumstances, enter into potentially unsafe situations,” Ms James said.

“The backpacker labour-force is vital to some industries associated with food production in regional areas but we are at risk of it being a black-market, exploited labour-force if the settings remain the same.”

by Leon Gettler, October 17^th 2016