‘Virtually impossible’ for migrant workers to hold employers accountable for unpaid wages

The exploitation of Australia’s migrant workers through low wages and unpaid entitlements is being exacerbated by an “inaccessible” legal system, a report has found.

The bigger picture: Under the Fair Work Act, migrants are entitled to hold their employers accountable for unpaid wages and entitlements through the small claims court.

However, a Migrant Justice Institute report released on Thursday has found that few do.

The authors say the current Fair Work Act — intended to establish a guaranteed safety net of fair, relevant and enforceable minimum legal rights, and entitlements for all workers — is “effectively hollow”.

“Nine out of 10 migrants who knew they were underpaid took no action,” the report says.

“An extremely small number of workers take this step — in 2022-23, only 137 attempted to recover their wages across the country.”

The key quote: “In reality, it is virtually impossible for most migrant workers to file and pursue a small claim without legal assistance.” — the Migrant Justice Institute’s

What happens next: In 2019, the Commonwealth Migrant Workers’ Taskforce recognised that the small claims court system was not enabling migrant workers to claim the wages they were owed.

It recommended a government review, which is yet to be completed five years later.

The report recommends a new dispute resolution process and streamlining of claims to address some of the challenges associated with lodging a claim.

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