Employer theft of temporary migrant workers’ wages in Australia: Why has the state failed to act?

Abstract

Wage theft has emerged as a major problem for regulation of work in Australia. Yet, the state has done little to address the issue. In this context, this article considers why there has been recent growth in reported cases of underpayment of wages, particularly of temporary migrant workers, and why the state has failed to implement a strategy to adequately address this problem. The article examines the fragmented nature of employment regulation and visa categories constraining worker agency which, combined with widening avenues for temporary migration, have contributed to the underpayment problem. We also consider how conflicting imperatives of the state, business influence over the policy process and weak political incentives to address underpayment help to account for the state’s inaction. JEL Codes: J58, J61, J81