Crackdown on migrant worker exploitation: Employers face increased scrutiny

The Fair Work Ombudsman and Australian Border Force recently conducted surprise inspections at around 40 businesses across Melbourne, focusing on sectors that employ large numbers of migrant workers. The targeted industries, primarily in the food sector, were scrutinised to ensure compliance with workplace and migration laws—a move that signals an intensification of government enforcement efforts.

BDO Migration Services Leader Rebecca Thomson said the inspections, were part of a broader strategy to enforce the Migration Amendment (Strengthening Employer Compliance) Act, introduced last year. “Inspectors conducted thorough audits of wage records, employment conditions, and the treatment of migrant workers,” she said. “While the food sector, including fast food, restaurants, and cafés, was a primary focus, inspections also extended to retail, hair and beauty, wholesaling, and manufacturing.

Rebecca said the inspections give a clear warning to employers: there is no excuse for non-compliance. “The Australian Government has made it clear that businesses employing temporary migrant workers must comply with both workplace and migration laws," she said. “These surprise audits are a sign of the government’s commitment to tackling exploitation in the workplace. “Employers need to be fully aware of their obligations and take proactive steps to ensure they are meeting the requirements.”

Key areas of concern during the inspections included ensuring workers received their correct wages and entitlements, verifying that sponsored visa holders were working in their nominated positions, and ensuring these workers were not subjected to excessive hours or unsafe conditions. The new laws introduced criminal penalties, including up to two years in prison and fines of up to $118,800 for non-compliance. “Employers found violating these laws risk not only financial penalties, but also serious reputational damage and may be subject to a prohibition declaration” Rebecca said. “Businesses who seriously, deliberately or repeatedly break the law can now be prevented from employing more migrant workers for up to 5 years”.

“Public exposure of such breaches can tarnish a business’s image and severely damage customer trust.”

As government enforcement continues, businesses must reassess their internal processes as well as third party providers and ensure compliance. “It’s not just about avoiding penalties, but about fostering a fair and compliant workplace.”

For media enquiries:
Tate Papworth 
Manager, Media 
E: Tate.Papworth@bdo.com.au 
Ph: 0433411189