Government calls for SME feedback on hefty penalties for illegal workers

The Government has called for small business feedback for its plans to reduce the number of illegal workers in Australia and slap heavy fines on employers who take on workers without proper authorisation, after a review found the number of people working illegally had soared since 1998.

The report has recommended fines for employers who take on illegal workers of $10,000 per worker.

“There should be a corresponding provision for ‘referring’ a non-citizen for work when that person does not have any current permission to work, but which attracts a maximum penalty of $10,000 which can be imposed for each offence,” the report says.

The Government’s review of illegal workers said that by the end of 2009 as many as 964,118 people – tourists or short-stay business visa holders, long-stay business holders, working holiday makers, holders of other temporary visas in special occupational groups and students – might be working without permission.

“The information held by Department of Immigration and Citizenship suggests that the employment of non-citizens who do not have permission to work is more common in certain occupations and industries than others,” the report says.

“It seems far more likely to occur in the construction, general agricultural, horticultural and restaurant industries and among taxi drivers and sex workers. It is also more likely to occur among certain groups and in certain locations.”

Citing DIAC figures, the top three industries for hiring illegal workers in the 2009-10 year were agriculture, forestry and fishing (599), construction (272), and accommodation, cafes and restaurants (250).

This was followed by “other” services (96), retail (93) and personal and other services (84) and manufacturing (75).

“We will overhaul the penalties for hiring illegal workers,” Immigration and Citizenship Minister Chris Bowen says, adding the Government had agreed in-principle to the review’s recommendations including the introduction of a three-tiered employer sanction regime with civil penalties and fines, in addition to existing criminal penalties.

“We are particularly interested in hearing the views of small business,” Bowen says.

“We must ensure any regulatory impacts are balanced against the need to act on illegal work practices.”

In his review of the Migration Amendment (Employer Sanctions) Act 2007, lawyer Stephen Howells concludes that the Act has “not proved to be an effective deterrent against the small number of employers and labour suppliers who persist in employing or referring non-citizens who do not have permission to work in Australia.”

“There is strong evidence suggesting that since at least 1998 there has been a growing number of non-citizens working in Australia when they do not have permission to work and that their presence is very often organised by intermediaries who abuse and exploit these workers.”

The report says the intermediaries are often involved in what appears to be taxation and welfare fraud, breaches of industrial, health and safety laws and other unlawful conduct.

The report also notes that the enactment of very limited criminal sanctions by the Howard Government have “so far failed to secure any convictions against contest.”

But Howells has also raised questions about the Department of Immigration’s ability to prosecute more illegal worker breaches.

“The curbing of this conduct… the imposition of infringement penalties and pursuit of prosecutions will require a substantial allocation of resources which would appear to be beyond the departments’ present financial reserves.”