Labor has promised to crack down on the exploitation of workers by significantly increasing penalties for employers who underpay workers to more than $200,000 for individuals and more than $1m for corporations.
A Labor government would also tighten legal protections for workers exploited in so-called “sham” contracts, where employers hire workers as subcontractors to avoid entitlements such as annual leave and sick leave.
Labor promised to give the fair work ombudsman more power to chase down employers who liquidate companies to avoid worker entitlements.
It would also increase the penalties for employers who exploit temporary overseas workers. There are 732,750 temporary workers in Australia, including students, 457 visa workers and working holidaymakers.
Labor would impose a new criminal offence for employers who “deliberately exploit temporary overseas workers”, even if they are employing the worker within the terms of their visa. The offence would be punishable by fines and up to two years’ imprisonment.
Labor’s employment and workplace relations spokesman, Brendan O’Connor, said the recent spate of cases involving underpayment, sham contracting and other exploitation required action.
O’Connor said Labor had met with workers around the country to investigate the problem and promised to consult with employers on the scale of the penalty increase.
“Recent examples of clear and widespread worker exploitation at notable companies have been met by silence and inaction from Malcolm Turnbull’s Liberals, despite continuous calls from Labor for action to protect working people and jobs,” O’Connor said.
“We will consult employers and their representatives, workers and unions on the scale of the increase to penalties to ensure there is an appropriate deterrent in place to protect workers from unscrupulous employers.”
In the past year, two 7-Eleven convenience stores have had their franchise agreements terminated for underpaying workers after a Fairfax investigation.
Pizza Hut delivery drivers have alleged they were paid rates as low as $12 an hour while providing their own car, fuel and vehicle maintenance.
The fair work ombudsman is investigating the case of retailer Myer, whose cleaners alleged they were denied pay and entitlements through the use of sham contracts and subcontracting.
Baiada food processing factories faced allegations of exploitation and the fair work ombudsman found young poultry workers were paid as little as $11.50 an hour.
Labor announced the policy on the eve of the resumption of parliament, which sits on Tuesday to Thursday.
