The exploitation of backpackers on working holiday visas is rife and demands an urgent overhaul of the migration scheme, a parliamentary inquiry has been warned.
The inquiry into the Working Holiday Maker program is examining these concerns along with the scheme's value to the Australian economy and tourism, and labour challenges faced during the coronavirus pandemic.
The Migrant Workers Centre (MWC) used its latest committee hearing on Wednesday to issue a plea for reforms to the program to more strongly protect migrants on the scheme.
MWC director Matt Kunkel said program failures have led to widespread mistreatment of working holiday makers by employers and labour hire firms.
“The country needs to urgently address the structural vulnerability of working holiday makers by reforming this visa system,” he told the committee.
“The fundamental shortcomings of this visa class … both disadvantage workers and provide fertile ground for unscrupulous employers to exploit those workers.”
'We didn't receive any pay'
Hsien Tan Chen, 31, claims he has been a victim of underpayment during his time on a working holiday visa.
The Taiwanese national was working for an abattoir near Werribee in Victoria’s south-west when the labour hire company he was employed by went into liquidation.
He told SBS News this meant he was not paid for two weeks - a debt of around $1,600. Two years on, he claims he has not been compensated.
“At first, I didn’t really know where to go for help after we didn’t receive any pay,” he said.
“We all felt really angry and hopeless and didn’t know where to get support.”
Mr Chen said he had to rely on his savings to pay for accommodation, food and travel.
Hsien Tan Chen says his underpayment situation is still yet to be resolved. Source: Supplied
He said he now wants to be an advocate for others on working with employment providers and becoming vulnerable to exploitation.
At the time, Mr Chen claims he tried to contact the Fair Work Ombudsman, "and they tried to follow those processes, but we didn’t really get anywhere".
“That made us feel like Australia didn’t really care about backpackers and we were being left on our own – there wasn’t any care for us," he said.
Making migrants aware of their workplace rights
The Fair Work Ombudsman also gave evidence to the committee on Wednesday, saying working holiday makers have been disproportionately impacted by these concerns.
Despite making up around one per cent of the total workforce, they account for almost seven per cent of the Fair Work Ombudsman’s active case load, the committee heard.
Fair Work Ombudsman executive director engagement Louise Peters said education programs directed towards working holiday makers about their working rights remained a priority.
“We do prioritise increasing the awareness of migrant workers, particularly visa holders, of their workplace rights and entitlements but also where and how they can seek help if they do have concerns,” she told the committee.
The top five allegations investigated relating to working holiday makers include issues around general wages and conditions, people not being paid for time worked, issues over post termination entitlements and notice of redundancy payments, according to the group's evidence.
‘Culture of non-compliance’
The Migrant Workers Centre has put forward a series of reforms to the migration pathway which it says would more strongly protect migrants against exploitation.
The MWC’s recommendations include scrapping a six-month restriction that prevents backpackers from staying on longer with an employer.
To file an unfair dismissal claim, workers must be with an employer for at least that period.
Mr Kunkel said the limit discourages temporary migrant workers from raising safety or wage theft concerns without unfair sacking protection.
“They deprive working holiday makers of their rights and breed a culture of non-compliance,” he said.
The MWC also wants criminal sanctions for serious wage theft, with extra penalties for breaches disproportionately affecting temporary migrant workers.
It also wants to end the requirement of regional work for working holiday makers to extend visas for a second or third year.
With additional reporting by AAP
