The warning signs of modern slavery in Australian businesses

A connection between wage underpayment and further exploitation including modern slavery has been identified in newly released research.

A report co-authored by University of Technology Sydney Associate Professor Laurie Berg and University of NSW Sydney Associate Professor Bassina Farbenblum has concluded that the more severe the underpayment of workers a business conducts, the greater the likelihood of forced labour.

Off the Books, published by the Migrant Justice Institute, revealed the extent of migrant worker coercion, intimidation and restriction, revealing that two thirds of temporary migrant workers in Australia are underpaid, one in four by at least $10 per hour. According to the report, it is the first identification of the clear, intentional system of migrant exploitation in Australia.

The companion, Off the Books: Practical Guidance for Businesses, revealed the specific practices that companies who conduct forced labour conduct, including the misuse of ABNs, insecure casual employment, misleading payslips, cash payment, and underpaid night or weekend work.

Professor Farbenblum said the data shows how these practices “operate together as a single architecture of exploitation”.

The exploitation, it was identified, is both deliberate and calculated - with further systemic non-compliance often conducted to hide evidence of misconduct. In connection, many temporary visa holders are, by their status, vulnerable - and many fear retaliation or consequences if they speak up.

According to Professor Berg, “when an employer controls whether your visa remains intact, the power imbalance is enormous, and some unscrupulous employers exploit it”.

She noted that most Australians are unaware of the businesses that are exploiting migrant workers, adding: "Nobody wants to buy goods or services produced by exploited migrants in Australia - but right now, we all almost certainly do.”

Specifying the sectors that are seeing high rates of exploitation, Professor Farbenblum said: “In horticulture, hospitality, commercial cleaning, retail and well beyond, Australian employers are securing cost advantages by underpaying migrant workers and using the same handful of tricks to cover their tracks.”

The experiences of 10,000 migrant workers on temporary visas were considered, confirming the nationwide and systemic scale of exploitation. According to one participant, “it is like an eco-system and everyone passes through it. These are those employers who work in less skilled sector[s] and they can easily hire new people without affecting their business.”

Anti-Slavery Commissioner Chris Evans explained the responsibility is on businesses to ensure worker protections.

He said: “Businesses need to be proactive to identify risks early, remediate impacted workers, and put in processes so it doesn’t happen again.”

“If you’re only checking paperwork, you’re missing what’s really happening to workers. Businesses need to get out, cross reference records and talk to workers to test the reality on the ground.”

In response to apparent deficiencies in Australian modern slavery legislation, President Donald Trump imposed a 12.5 per cent tariff on Australian goods. The directive, effective from 24 July 2026, saw Australia placed on a higher tier compared to the previous 10 per cent global duty, which it replaced.

Following an investigation by the Office of the United States Trade Representative (USTR), it was reportedly imposed in response to Australia’s disclosure-only model of supply chain risk reporting - which differs from the USA’s hard import prohibition on good produced with forced labour - to eliminate global supply chain dumping grounds, and to provide a statutory mechanism to maintain baseline tariffs globally.

The Australian government rejected the justification that Australia doesn’t address forced labour, accusing President Trump of breaking free trade principles.

Before the tariffs were implemented, as reported by the ABC, Prime Minister Anthony Albanese said: “There is an ideological disagreement where the United States administration has broken with what was a decades-long understanding that tariffs are not positive for the country that is imposing them.”

Similarly, Anti-Slavery Commissioner Chris Evans criticised the tariff for not being motivated by the right reasons, adding: “It’s a shame that what is a really important human rights issue is being treated as a bit of a play thing in the tariff war.”

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