A publication of the Centre for Advancing Journalism, University of Melbourne

The Global Citizen

International students falling victim to wage theft

International students in Melbourne are at high risk of being underpaid, and some are not even aware of Australia’s minimum wage rates.

Sijie Wang and Jiaye Meng examine the widespread exploitation of international students. 

International students falling victim to wage theft

There has been a concerted push by unions in the past few years to push wage theft claims.

Story by Sijie Wang Jiayi Meng
 

Jingning Xiao is one of an estimated 77% of international students who were ripped off by her employers while working part-time in Melbourne to support her studies.

“None of the jobs I have ever had have paid more than $15 an hour,” the 24-year-old  Master of Food and Packaging Innovation student said.

Ms Xiao’s story is common, according to the International Students and Wage Theft in Australia report by the Migrant Justice Institute. The 2020 report, the result of a nationwide survey of more than 5,000 international students, found underpayment of international students was systemic and widespread, with more than three-quarters paid below the minimum casual hourly rate of $20.33.

Ms Xiao has now given up part-time work, which she thought would help her integrate into Australian society. Under her student visa, also known as a 500 visa, Ms Xiao is allowed to live and work in Australia for 18 months after graduating.

Ms Xiao worked at a busy sandwich cafe in Preston for $13 an hour. She left that job after finding another, at a milk tea shop. But that job only lasted one day, and then Melbourne went into another extended lockdown.

“I thought I would stay in Australia after graduation before I found myself in these situations,” she said. “But I’ve found that it’s not easy to find employment in Melbourne as a foreigner.”

Over the past three years, around 1,000 young workers have reported wage theft, according to Migrant Workers Centre spokesperson Edwina Byrne.

The centre was set up by the Victorian Trades Hall in 2018 to protect migrant workers from bad-faith employers. “The Migrant Workers Centre has organisers who can assist migrant workers in their preferred language and has successfully reclaimed over $1 million in unpaid wages and entitlements for migrant workers,” Ms Byrne told The Global Citizen.

The Migrant Workers Centre’s wage theft report found 84% of fast-food restaurants and 46% of restaurants and cafes were not paying workers the correct wage.

The report said the proportion of international students reporting “egregious” levels of wage theft had not improved since 2016.

Some international students have abandoned plans to stay in Australia

The number of international students in Australia has declined since March 2020, when the Australian government closed its borders because of the global covid-19 pandemic.

Jia Guo is an international student who graduated from the University of Melbourne with a Master of Music (Performance Teaching) in July 2021. She wants to remain in Australia with her boyfriend, but the lack of job opportunities means she may have to return to China.

Jia is a pianist, but she doesn’t have a piano at her current home in Melbourne. She can only play the electric piano now.

Jia is a pianist, but she doesn’t have a piano at her current home in Melbourne. She can only play the electric piano now.

“Australia has more expensive living costs compared to my home country,” Ms Guo said. “At the end of 2019 when the covid-19 outbreak happened in China, my parents’ income was affected and could not give me enough money to support my life here. I tried to solve my financial difficulties by working part-time, but I simply couldn’t find a job during the lockdown.”

Ms Guo, 24, made it through Melbourne’s long lockdown with the help of the University of Melbourne’s free meal program and a local foodbank.

“I don’t know if I should leave here and go home, where there are obviously plenty of job opportunities,” she said. “I don’t know how long it will take for Australia to recover from the pandemic.”

Jia Guo said underpayment might force her to return home.

Jia Guo said underpayment might force her to return home.

Some international students unaware they’re being underpaid

Under Australian law, all employees are entitled to:

  • The minimum legal hourly rate for every hour worked, including opening, closing and trial shifts
  • Any paid leave accrued
  • Applicable penalty rates for working weekends, public holidays or early or late shifts
  • 10% superannuation

Some international students know they are being underpaid

Melbourne international student Sharon Li* works at a busy Chinese restaurant for $17.80 an hour, well below the legal minimum casual wage of $20.33. But Sharon said she’s paid more than some of her friends, who get $13 to $15 an hour.

“I am quite satisfied with this hourly rate because this is the most I’ve been paid since the lockdowns began,” said the 25-year-old from Tianjin in northern China.

When she first arrived in Australia in 2020, Sharon worked at a hotpot restaurant for $13 an hour. “Language was the largest barrier for me and I could only find work at restaurants with Chinese owners.”

One-fifth of international students have worked for $12 an hour or less, according to the wage theft report.

Ms Li said she will continue to work, even though she is underpaid, to help ease the financial burden on her parents. She suspects her cash-in-hand job might be illegal but is reluctant to report it to authorities for her own safety.

“If I report my employer to the authorities, I’m worried I will be forced to return to China, and I am also afraid of any retaliation from my employers,” she said.

Yiyi Huang*, 24, is an international journalism student who has fallen victim to a different kind of wage theft. Her “employer”, a Chinese-language media company, asked her to apply for an Australian Business Number (ABN) in order to get paid.

Redfern Legal Centre solicitor Kate Gauld said the practice of asking international students to apply for ABNs was how some employers bypassed Australia’s minimum wage regulations.

“This means that employers can withhold work entitlement from international students freely and avoid their responsibility for other things as well,” she said “These international students also cannot get the tax refund they’re entitled to.”

Ms Huang, who has never previously worked in Australia, thought getting an ABN was the normal way of being employed.

“You always need to provide personal information such as ABN when you apply for a job,” she said, “I think my salary is pretty good.” Ms Huang is paid $30 for each 1,000-word article she writes.

Ms Li believes many international students accept being exploited by their employers. “I can’t change this phenomenon alone,” she said. “Even if I didn’t do this job, there will be others who will do it. For international students who were locked down for so long, we don’t have many choices.”

Help is available

There is assistance for international students in Australia.

Foodbank Victoria has a pop-up store for international students in the Melbourne CBD.

The Australian Red Cross also provides emergency relief to people in need. Until the end of December 2021, people unable to receive government support could receive up to $800 every two months under the Extreme Hardship Support program.

The Fair Work Ombudsman can be contacted directly on 13 13 94, via the free interpreter service on 13 14 50 or by visiting Fairwork.

 

    * Not their real name

About The Citizen

THE CITIZEN is a publication of the Centre for Advancing Journalism. It has several aims. Foremost, it is a teaching tool that showcases the work of the students in the University of Melbourne’s Master of Journalism and Master of International Journalism programs, giving them real-world experience in working for publication and to deadline. Find out more →

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