Wage theft is widespread – but very few migrant workers ever recover their wages. Our report explains why.
If a worker’s employer refuses to pay their correct wages, the worker can file a claim in the “Small Claims” jurisdiction of the Federal Circuit and Family Court of Australia.
But an extremely small number of workers take this step: in 2022-23, only 137 attempted to recover their wages this way across the country. This is a tiny fraction of the estimated 0.5 to 1.5 million workers being paid below minimum wage – not to mention thousands of others who are not paid what has been agreed.
The small claims jurisdiction was introduced to make recovery of wages in court more accessible, ‘efficient’ and ‘expeditious’ by the court, and ‘not subject to onerous procedural requirements’.
In reality, it is virtually impossible for most migrant workers to file and pursue a small claim without legal assistance.
Over the past year, we observed court hearings, analysed Court and Fair Work Commission data and consulted with community organisations, unions, and academics.
Lee was fired after being injured at work. With pro bono legal help he reclaimed over $200,000.
We found
Key recommendations
Increase legal assistance
New Wages & Superannuation Calculation Service
Enable workers who win wage claims to recover legal costs from employer
Increase funding for community legal assistance
New duty lawyer scheme to support workers in court
Simpler, more flexible processes
New Fair Work Commission dispute resolution process for wages & entitlements
Potentially, a new Fair Work Court to streamline claims
More accessible court process, particularly for unrepresented litigants
Ensure migrants ultimately get paid
Where the employer disappears, liquidates or refuses to pay:
- New DEWR Guarantee scheme pays, recouping where possible
- Fair Entitlements Guarantee extended to temporary migrants
Endorsed by 24 legal service providers and community and anti-trafficking organisations across Australia.