The Migrant Workers Centre is calling on the Federal Government to urgently expand the Fair Entitlements Guarantee (FEG) scheme to include temporary visa holders and unpaid superannuation.
This move is critical to addressing the systemic exploitation of migrant workers and ensuring all workers have access to financial protection when their employer becomes insolvent.
Key Issues:
- Temporary visa holders are excluded from the FEG scheme, leaving over 1.6 million workers without financial recourse in cases of employer insolvency.
- Current exclusions incentivise illegal phoenix activity, where businesses deliberately liquidate to avoid financial obligations.
- Migrant workers face significant challenges recovering unpaid entitlements due to legal inefficiencies and employer misconduct.
- Despite contributing billions annually to Australia’s economy, migrant workers are vulnerable to exploitation, often paid below the minimum wage and denied superannuation.
Recommendations:
- Implement Recommendation 13 of the Migrant Workers’ Taskforce Report (2019) to extend the coverage of the Fair Entitlements Guarantee to temporary migrant workers.
- Add unpaid superannuation to the list of entitlements covered by the Fair Entitlements Guarantee.
- Implement the Migrant Justice Institute’s recommendation to establish a guarantee scheme in the small claims context to ensure that any worker with a court order in their favour receives their lawful minimum entitlements if the employer disappears or refuses to pay.
Quotes Attributable to Matt Kunkel, CEO of the Migrant Workers Centre:
“Migrant workers are the backbone of many industries in Australia, contributing billions to our economy, yet they are systematically excluded from basic protections under the Fair Entitlements Guarantee.”
“By excluding temporary visa holders, we are leaving a significant portion of the workforce vulnerable to severe financial hardship and incentivising illegal phoenix activity. These workers deserve the same protections as any other worker in Australia.”
“Adding superannuation to the FEG is not just a fairness issue—it’s a necessity to protect workers’ long-term financial security.”
For more information, please contact Omar Ghazala, Digital and Communications Officer via email [email protected]
