Criminal charges for rogue employers

The Coalition has backed criminal sanctions being imposed on employe­rs engaging in ‘serious and egregious exploit­ation’.

The Coalition has backed criminal sanctions being imposed on employe­rs who engage in the “most serious and egregious exploit­ation” of workers, after a new report found wage under­payment was widespread and entrenched­ across the temporary migrant workforce.

Jobs and Industrial Relations Minister Kelly O’Dwyer said the government had given “in principle” support for the recommendations of the Migrant Workers’ Taskforce, including the impos­ition for the first time of criminal sanctions on employers engaging in “clear, deliberate and systemic” wage theft.

The taskforce, chaired by Allan Fels, also recommends a national labour hire registration scheme operate in the “high risk” industry sectors of horticulture, meat proces­sing, cleaning and security.

Labour hire operators in the sectors would have to register with the scheme, and face losing­ their registration if they contravened a relevant law. Host employers would be required to use registered labour hire operators.

The taskforce’s report, to be release­d today, found criminalisation of wage underpayment was gaining increasing support, particularly for deliberate, serious and intentional contraventions.

“The taskforce considers that criminal sanctions can form an important part of a suite of enforcemen­t tools available to address­ migrant worker exploitation,’’ it says.

“The introduction of criminal sanctions would provide a clear signal to unscrupulous employers that exploitation of migrant workers is unacceptable, and the consequences of doing so can be severe.”

Ms O’Dwyer said the government had “no tolerance for those who repeatedly and deliberately underpay workers, whether they are an Australian or worker on a visa”.

“For the very first time, we will introduce criminal sanctions for the most serious and egregious forms of deliberate exploitation of workers,’’ she said, adding that such penalties would not apply to “employers that accidentally or inadvertently do the wrong thing”.

The taskforce says criminal sanctions will need to be “aimed at dealing with exploitation that is clear, delibera­te and systemic”.

Noting that the Fair Work Act was underpinned by a predominantly civil regime and might not be suitable for applying criminal sanctions, it says consideration should be given to the most appropriate legislative vehicle.

Ms O’Dwyer said the government would consult with stakeholders and “carefully consider” the appropriate­ legislation.

The taskforce recommends the government consider new aven­ues to hold individuals and businesses to account for their involvement in workplace law breaches, including extending accessori­al liability provisions of the Fair Work Act to cover situ­ations where businesses contract out services to persons.

It calls for the general level of penalties for breaches of the wage exploitation-related provisions in the Fair Work Act to be increased and for the government to give the courts specific power to make advers­e publicity orders and banning orders against employers who underpay migrant workers.

The taskforce recommends the government consider changes to the powers and resourcing of the Fair Work Ombudsman, including whether it be given the same information-gathering powers as the Australian Competition & Consumer Commission.

Professor Fels and deputy chairman David Cousins said “as many as 50 per cent of temporary migrant workers may be being underpaid in their employment”.