Underpaid migrants a systemic modern slavery indicator: MJI

A report by Migrant Justice Institute (MJI) said underpaid migrant workers point to a more systematic issue, which can lead to practices that are indicators of modern slavery.

The Off the Books report co-authored by University of Technology Sydney (UTS) associate professor Laurie Berg and UNSW associate professor Bassina Farbenblum found two-thirds of temporary migrant workers across Australia are underpaid, with one in four losing at least $10 an hour.

The report presents findings on the working conditions of almost 10,000 migrants on temporary visas in Australia from the 2024 National Temporary Migrant Work Survey. This includes international students, backpackers, graduate visa holders, employer-sponsored workers and other migrants who worked in Australia on a temporary visa.

It noted the more severe the underpayment, the more likely workers are to experience indicators of forced labour such as coercion, intimidation and restricted freedom.

"The worse the underpayment, the more likely the employer also issued misleading or no payslips, denied superannuation, paid cash, made wage deductions and engaged in practices that are indicators of modern slavery," the report read.

"These aren't separate problems caused by scattered rogue employers. For the first time, our data shows this is a single system of noncompliance."

Data from the report showed the more a business underpaid an employee, the more likely that business also breached other workplace obligations and engaged the worker as a casual or night worker.

The report urged introduction of a national Labour Hire Licensing Scheme and an enforceable risk-based due diligence obligation under the Modern Slavery Act, reforming payslip obligations to prevent businesses from disguising noncompliance, and strengthening general protections preventing employer retaliation against migrant workers.

The government recently said large corporates with annual consolidated revenue of over $100 million will face a criminal offence where they fail to prevent modern slavery in their supply chains.