The Fair Work Ombudsman will launch an investigation into wages and conditions for overseas workers employed on 417 working holiday visas.
The agency is expecting to receive an increase in calls for assistance from overseas workers in coming years. Reliance on overseas workers will climb and is expected to increase from 2.5 to 3.5 million over the next five years.
Since its inception in July 2009, 20 per cent of all the FWO’s legal activity has focused on overseas workers. It has initiated 51 litigations involving overseas workers with restaurants accounting for the highest number of litigations, followed by retail, fast food, cleaning and maritime operators.
In total, the litigations related to alleged underpayments totalling more than $3.8 million and included 10 cases involving workers on 417 visas. The most severe penalty awarded by the courts was $343,860 and involved the underpayment by a Perth cleaning company of five overseas workers on 417 visas.
The 417 visa allows young people to holiday and work in Australia for up to two years. To qualify for a second year, 417 visa-holders need to have undertaken 88 days of work in a designated industry and regional area. However, the FWO is concerned the 88 working day period is being exploited by some employers.
As part of its investigation, the FWO will analyse Immigration Department statistics, work with community groups for overseas workers as well as employer groups and unions. A detailed report will be published.
Figures obtained by the Fair Work Ombudsman show that more than 128,000 417 working holiday visas were issued in the first half of the 2013-14 financial year.
In the last two years, the FWO has received two thousand requests for help from workers who initially identify themselves as 417 visa holders. This represents 1 in 3 requests from all visa holders.
The amount recouped by the FWO in unpaid entitlements for 417 visa workers has been steadily increasing over the last few years. For example, $67,000 was recouped in 2011-12 for 77 individuals on 417 visas. By 2013-14 this had increased to $345,000 for 309 visa holders.
