Modern Slavery Risks Linked to Wage Underpayment Under New Australian Corporate Guidance
New guidance released by Walk Free, the Australian Anti-Slavery Commissioner, and the Migrant Justice Institute, warns Australian corporations that systemic wage underpayment serves as an early operational indicator of modern slavery and forced labour.
Harry Taruva 
Sydney — Joint guidance published by Walk Free, the Office of the Australian Anti-Slavery Commissioner, and the Migrant Justice Institute, warns Australian business entities that wage underpayment is often an early operational indicator of modern slavery within domestic supply chains.
The publication, 'Off the Books: Practical Guidance for Business', translates findings from landmark research co-authored by Associate Professor Bassina Farbenblum of the University of New South Wales (UNSW) Sydney and Associate Professor Laurie Berg of the University of Technology Sydney (UTS).
Their underlying survey of nearly 10,000 temporary migrant workers revealed that two-thirds experienced wage theft, with 25% underpaid by at least AU$10 per hour below the statutory minimum wage.
The findings establish that severe underpayment directly correlates with forced labour indicators, including coercion, intimidation and restricted movement.
The framework arrives following the federal government's announcement to introduce a criminal "failure to prevent" modern slavery offense aimed at large corporations generating consolidated annual revenues exceeding AU$100 million.
Report co-author, Associate Professor Bassina Farbenblum, stated that non-compliant operational practices systematically mask workforce exploitation across major economic sectors.
"Our data shows for the first time that misuse of ABNs, misleading pay slips and forced labour indicators operate together as a single architecture of exploitation," Prof. Farbenblum said.
"In horticulture, hospitality, commercial cleaning, retail and well beyond, Australian employers are securing cost advantages by underpaying migrant workers and using the same handful of tricks to cover their tracks," she said.
Australian Anti-Slavery Commissioner, Chris Evans, urged corporate boards to move beyond administrative paperwork checks and conduct active field verification across sub-contracted operations.
"Underpayment is not just non-compliance. In some cases, it is the first sign of more severe risk in your business or supply chain," Evans said.
"Workers are often too afraid to make a report. That means businesses need to be proactive to identify risks early, remediate impacted workers, and put in processes so it doesn’t happen again," he said.
