From small cafés to large logistics firms, businesses across Australia rely on migrant workers to fill critical roles.
Yet, simple employment requirements are often skipped, leading to companies paying incorrect wages or hiring individuals who aren’t legally permitted to work—putting themselves at risk of hefty penalties, reputational damage, and operational disruptions.
With new wage theft laws in effect as of January 2025 (Kailasanathan, 2024), migrant worker exploitation is an area of growing scrutiny. Businesses must take a proactive approach to verifying eligibility and wage requirements, or risk serious consequences.
Wage Theft Laws Tighten With 2025 Reforms
As of January 1st, intentional wage underpayment (classified as ‘wage theft’) is a criminal offence under the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Schreier-Joffe & Tolkin, 2025). Employers found guilty of deliberately underpaying workers now face fines of up to $1.65 million and potential prison sentences of up to 10 years (Sadler, 2025).
This landmark reform stems from the 2022 Jobs and Skills Summit, which identified wage exploitation, particularly among vulnerable workers, as a critical issue requiring legislative action (Polis, 2025). The decision was backed by mounting evidence of wage underpayment and poor working conditions disproportionately affecting migrant workers. With a survey finding that three-quarters of migrant workers were earning below the casual minimum wage, and a quarter earning less than half that rate (Sadler, 2025).
Fair Work Inspects Wage Theft in High-Risk Industries
In light of these policy reforms, Fair Work Ombudsman (FWO) and Australian Border Force (ABF) officers have escalated their crackdown on wage theft. Authorities conducted surprise visits to around 40 Melbourne businesses earlier this year, predominantly focusing on restaurants, cafés, and fast-food outlets (Sarwal, 2025). Similar operations in Hobart targeted businesses with a history of non-compliance or employee complaints, leading to millions of dollars in recovered wages (Box, 2025).
With hospitality and food services among the top industries employing migrants, the enforcement push underscores the government’s new zero-tolerance stance on migrant worker exploitation. To ensure compliance and mitigate risk, employers should regularly check wages against Fair Work guidelines, use the government’s online pay calculators, and follow compliance codes. In the event the business identifies a mistake, employers who self-report may be able to enter a cooperation agreement to avoid criminal prosecution. (Fair Work Ombudsman, 2025)
Why Are Migrant Workers Particularly Vulnerable to Wage Theft?
Many people who move to Australia for work can get caught in visa limbo, stuck on bridging visas with unclear employment entitlements (Uibu, 2024). This can create power imbalances, as they are tied to a single employer for visa extensions or permanent residency—making it extremely difficult to report mistreatment. Employers have also been known to exploit disengaged or undocumented workers, further deepening their vulnerability. (Hutchens, 2024)
Consequences of Hiring Someone Without Work Rights in Australia?
With over 70,000 undocumented workers in Australia (Uibu, 2024), there is a genuine risk of accidentally employing someone without the legal right to work. However, it is the employer’s responsibility to ensure that all their employees are compliant, and failure to do so can lead to serious penalties.
Employers can face fines of up to $630,000 per contravention, with individuals liable for up to $126,000 (Department of Home Affairs, 2024). In more serious cases, businesses and directors can be fined up to $315,000 and/or face up to five years in prison (Australian Government Department of Home Affairs, 2024). This includes the risk of criminal charges for exploiting illegal workers (such as through forced labour or debt bondage), which can result in lengthy jail sentences.
Steps to Ensure Compliance With Right to Work Requirements:
- Conduct a right to work check: Use the free Visa Entitlement Verification Online (VEVO) system or an all-in-one service like CV Check to confirm that a non-citizen has the appropriate work rights before they start, and check again shortly before their visa expires.
- Verify visa status regularly: Check the visa status of temporary workers periodically to ensure they maintain work rights throughout their employment.
- Don’t assume responsibility lies with others: Even if you use a labour hire company or contractor, you are still accountable for ensuring workers are legally allowed to work in Australia.
- Report suspected exploitation: If you suspect human trafficking, slavery, or similar offences, report them immediately to the Australian Federal Police.
Fool-Proof Employment Compliance Is Now Non-negotiable
The introduction of stricter laws for employing migrant workers is a powerful reminder that checking work rights and ensuring fair wages are serious legal imperatives. Employers must take proactive steps to verify the work eligibility of all employees, in order to avoid severe penalties and the potential exploitation of vulnerable workers. With compliance now being closely monitored, having a trusted, efficient verification process is more important than ever.
CVCheck can help protect your business, your reputation, and your bottom line, with automated checks that offer a simple, reliable way to confirm the work rights of your team.
References:
Australian Bureau of Statistics. (2024). Jobs in Australia. https://www.abs.gov.au/statistics/labour/jobs/jobs-australia/latest-release
Australian Government Department of Home Affairs (2024). Important information for employers of foreign nationals. https://www.dpi.nsw.gov.au/__data/assets/pdf_file/0005/1295528/Fact-Sheet-Employers-on-worker-exploitation.pdf
Box, L. (2025). Melbourne and Hobart restaurants face Fair Work crackdown. https://www.hospitalitymagazine.com.au/fair-work-crackdown-tassie-and-vic/
Fair Work Ombudsman (2024). New criminal underpayment laws start 1 January 2025. https://www.fairwork.gov.au/newsroom/news/new-criminal-underpayment-laws-start-1-january-2025
Fair Work Ombudsman (2025). Compliance and Enforcement Policy. https://www.fairwork.gov.au/sites/default/files/migration/725/compliance-and-enforcement-policy.pdf
Hutchens, G. (2024). Temporary migrant workers in Australia facing ‘disturbing’ patterns of exploitation from some employers, UN official says. https://www.abc.net.au/news/2024-11-27/slavery-in-australia-un-report-special-rapporteur/104652556
Kailasanathan, K. (2024). Requirements For Employers When Hiring Foreign Workers. Legal Vision. https://legalvision.com.au/hiring-foreign-workers/
Madden, J. (2025). Hamilton Island Enterprises underpaid workers by $28.1 million, Fair Work finds. https://www.abc.net.au/news/2025-01-30/hamilton-island-owners-ordered-to-pay-lost-wages/104875452
Polis. M. (2025). Protected: New employment laws – Landmark changes from 1 January 2025. https://www.governanceinstitute.com.au/news_media/new-employment-laws-landmark-changes-from-1-january-2025/
Sadler, D. (2025). Wage theft is now a criminal offence. https://ia.acs.org.au/article/2025/wage-theft-now-a-criminal-offence.html
Sarwal, A. (2025). Australian authorities crack down on migrant worker exploitation in food sector. https://www.theaustraliatoday.com.au/australian-authorities-crack-down-on-migrant-worker-exploitation-in-food-sector/
Schreier-Joffe, S. & Tolkin, D. (2025). Significant Changes to Workplace Laws from 1 January 2025. https://www.keypointlaw.com.au/keynotes/significant-changes-to-workplace-laws-from-1-january-2025/
The Migration Agency. (n.d.). Melbourne company convicted of hiring illegal migrant workers: What you need to know. https://www.themigrationagency.com.au/melbourne-company-convicted-of-hiring-illegal-migrant-workers-what-you-need-to-know/
Uibu, K. (2024). Over 70,000 people live in Australia illegally, experts say many are vulnerable to exploitation. https://www.abc.net.au/news/2024-01-15/over-70-000-people-live-in-australia-illegally/103269812
