New report reveals 4 workplace red flags businesses should investigate for signs of worker exploitation

Australia’s largest survey of temporary migrant workers has found widespread exploitation across the country’s workplaces, with evidence showing the more severely a worker is underpaid, the more likely they are to experience forced labour indicators.

Nearly 10,000 temporary migrant workers contributed to the evidence behind the new Off the Books: Practical Guidance for Business report, which provides practical guidance to help businesses identify and address worker exploitation.

The report was developed by the Migrant Justice Institute, the Office of the Anti-Slavery Commissioner, and Walk Free.

Research shows exploitation can be hidden in workplace practices that seem routine, making it harder for businesses to recognise when workers are at risk.

The report highlights 4 workplace red flags businesses should investigate to identify risks early and better protect workers.

Not everyone working on an ABN is genuinely operating their own business.

Some businesses ask workers to get an ABN even though they perform the role of an employee. This means employers aren’t required to keep the same records for hours worked, pay, or employee entitlements.

The findings show 43% of ABN workers surveyed were paid below the National Minimum Wage.

Businesses should review contractor arrangements to ensure workers are correctly classified and receiving the workplace protections they are legally entitled to.

Casual employment is legitimate, but insecure work arrangements can make it easier for exploitation to happen when workplace rights aren’t respected.

Employers can change or remove hours at any time, making it easier to retaliate against workers who raise concerns.

4 in 5 casual employees surveyed were paid below their individual minimum entitlements. Among those, 37% were paid below the National Minimum Wage before penalty rates or 25% casual loading were taken into account.

Businesses should ensure casual employees receive all legal entitlements and investigate where patterns of underpayment are identified.

Night and weekend work often attracts higher pay rates, which can create opportunities for wage manipulation.

When those shifts aren’t paid correctly, or records don’t match the hours worked, it may indicate broader workplace compliance issues needing closer attention.

Survey findings show 75% of workers who regularly worked nights and weekends were underpaid by an average of $9.40 per hour.

Businesses should regularly review payroll records against hours worked to ensure workers receive the correct rates for every shift.

Accurate payslips are one of the easiest ways to identify whether workers are receiving their legal entitlements.

Missing or misleading payslips can hide underpayment and should prompt businesses to look more closely at workplace practices.

2 in 5 of the workers surveyed received payslips recording underpaid wages.

Businesses should ensure accurate record-keeping, verify information from workers and suppliers, and investigate discrepancies before they become indicators of more serious exploitation.

Finding a workplace red flag doesn’t automatically mean exploitation is occurring, but it should prompt businesses to investigate further.

If a red flag is identified, businesses should:

Read the Off the Books: Practical Guidance for Business report to learn more.