Fair Work Ombudsman crackdown uncovers ‘dodgy’ businesses offering staff just $7 per hour

A Fair Work Ombudsman crackdown has uncovered Melbourne businesses scamming their staff with cheap rates, inspectors handing out a whopping 151 infringement notices.

Advertisements offering jobseekers wages as low as $7 an hour were uncovered in a crackdown run by the Fair Work Ombudsman.

Inspectors used powers provided under new laws to issue 151 infringement notices to employers since March 2023.

Bosses who posted job ads offering illegally low rates of pay were fined and ordered to remove the ads as part of the blitz.

Fair Work Ombudsman Anna Booth said the regulator would now contact major online job

websites to seek their co-operation to ensure they too comply with the law.

“Dodgy job ads are unlawful, and some of them are scams. We want to stop dodgy ads

before they appear,” Ms Booth said.

In one case, the ombudsman’s office received an anonymous tip alleging ads for full-time and part-time bar staff positions were being posted by a hospitality business, offering to pay just $7 to $10.50 an hour.

Full-time and part-time bar staff positions were being posted by hospitality businesses offering to pay just $7 to $10.50 an hour.

Also, a Melbourne restaurant advertised for employees, aiming to recruit three people in roles such as chef and waiter.

The job ad offered a salary of $16 to $20 an hour, which were below the legal minimum rates of $22.61 to $24.87 an hour. The ad also did not indicate juniors were being sought.

The employer was fined and the ad was taken down.

Ms Booth said job websites were being asked make it easier for employers to put legal wage rates in their ads.

“Employers should do the right thing when recruiting their workforce – and those who break

the law are paying the price.

“Advertising your intention to pay employees $7 per hour, for example, is precisely the sort

of unacceptable conduct that the Fair Work Ombudsman wants to stamp out,” she said.

Dodgy job ads often targeted vulnerable people, such as migrants, Ms Booth said.

“We want to stop exploitation at the earliest moment – and trying to take advantage of

migrant workers who may be desperate for income or unaware of their rights is appalling,”

she said.

Fair Work Inspectors scour job advertisement websites and alert employers over infringement notices and also to provide education.