417 Visa Complaints on the Rise

[Guest The Pom Queen]

The Fair Work Ombudsman is now receiving more complaints from overseas visa-holders working in Australia than ever before. With alleged abuse of the 417 visa rearing its ugly head again, what does the industry think?

With news that a young Italian backpacker was allegedly paid less than $2 an hour while working in Tasmania for an employer who recruited working holidaymakers wanting to stay in Australia for two years We would like to know how widespread such practices are.

And what do the industries that employ backpackers as temporary labour and the tourist industry that encourages them to come to Australia think?

In August, 2014, the FWO announced it would conduct a national review of the wages and conditions of overseas workers in Australia on the 417 working holiday visa.

Allegations have been raised with the Ombudsman that the 88-day requirement is being exploited by some unscrupulous operators.

The Ombudsman is now receiving more complaints from overseas visa-holders working in Australia than ever before.

“Complaints from 417 visa-holders have increased significantly – and the Fair Work Ombudsman has recently changed its operational processes to focus on employees who most need our intervention,” Ms James said.

“While we have always had a strong focus in relation to visa-holders, we now give these vulnerable employees priority through the Overseas Workers’ Team – and have invested significant resources in compliance and litigation activities.”

Between 2011-12 and 2013-14, complaints from visa-holders to the Fair Work Ombudsman increased by 165% from 909 to 2625.

Complaints from 417 visa-holders were up 382 per cent from 216 to 1042.

Between July 1, 2011 and June 30, 2014, the Fair Work Ombudsman dealt with 5633 complaints from visa-holders and recovered more than $3.2 million in outstanding wages and entitlements for them.

Between July 1, 2012 and June 30, 2014, the Agency finalised 22 legal cases involving overseas workers – representing about a quarter of all litigations concluded during this time period.

During the same period, 5000 overseas workers and visa-holders called the Fair Work Infoline for advice and assistance.

Of the overseas workers who have contacted the Fair Work Ombudsman in the past financial year seeking assistance, 58% were male and 42% female.

More than 35% were aged between 26 and 30 and most were born in Korea, China, Germany, France and India.

The largest number of requests for assistance from overseas workers – 24%, came from employees in the accommodation and food services sector.

Information provided to the Fair Work Ombudsman by DIPB shows that almost 50,000 second-year 417 visa applications were approved last financial year.

The top five countries now using this program are Taiwan, the United Kingdom, South Korea, Ireland and Italy.

The Director of the Fair Work Ombudsman’s Overseas Workers’ Team, Ms Carey Trundle, recently travelled to Cairns, Darwin and Alice Springs to meet with key stakeholders to gain intelligence as part of the 417 review.

As part of community engagement, employers, business groups, unions, local councils and police are being consulted.