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Australian visas sold for $70,000 at 7-Eleven

What started off as the biggest wage scandal in Australian history, is now turning out to be much more than that with accusations of  an ‘indentured labour scheme’ being run by some 7-Eleven franchisees who operated ‘visa factories’ to supplement their income and run their businesses well under award wage rates by forcing students to breach visa laws.

Foreigners have been paying between $25,000 and $70,000 to certain 7-Eleven franchises to sponsor them on a visa, alleges a recent Fairfax report.

The report said that it has uncovered evidence that, “some franchisees are running as one-stop recruitment shops providing a steady stream of heavily indentured students and other workers into 7-Eleven stores.

“Foreign students as well as workers on 457 visas are understood to be part of the "visa factory" scam operated by some 7-Eleven franchisees. The model has franchisees charging workers $25,000 to $70,000 to sponsor them on a visa,” the report alleges.

The scandal has now become a matter set for a senate hearing in Melbourne today, where senior executives from the company as well as 7-Eleven workers who have been victims of wage fraud will appear.

The Fairfax report named several former 7-Eleven franchises in its report including Brisbane-based Mubin Ul Haider, who previously won 7-Eleven's franchisee of the year for Queensland.

The report alleges that Mr Ul Haider placed a series of ads for his consultancy business on social media and trading site Gumtree just days after being fined by the Federal Circuit Court for underpaying staff at his 7-Eleven store in Brisbane.

"I (Mubin Ul Haider) committed to manage best franchise business," the ad reads.

The report states that Mr Ul Haider started "sponsoring" workers on 457 visas in February 2012. Two years later the Department of Immigration launched action to ban him after finding evidence he was underpaying his workers. In August 2014, he was banned from sponsoring visas for two years. Mr Ul Haider ceased being a franchisee in 2014.

The spokeswoman for 7-Eleven declined to confirm during which month of 2014 the company and Mr Ul Haider parted ways. Mr Ul Haider did not respond to inquiries by Fairfax media.

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  • Christopher Levingston
    Christopher Levingston Thursday, 24 September 2015

    You have to feel sorry for those candidates who allow themselves to be exploited by these criminal entrepreneurs. For years MA has heard rumors of these visa scams and candidates being charged for sponsorship. DIBP must have heard the same rumours swirling around but they have done nothing. MA and its members routinely communicate evidence and leads to DIBP integrity units and seek to protect their clients against these criminal entrepreneurs who continue to act in this space. DIBP does nothing. Look at what Abel Prasad is doing and continues to do. I understand he is driving a new Merc...not bad for an undischarged bankrupt. DIBP has a protective function and should actively follow up leads and intel. The failure to act only emboldens the crooks and victimises the vulnerable even further.

  • Guest
    will Thursday, 24 September 2015

    What else is new?

    Businesses have been exploiting this loophole for years, nothing will change...

    Its a shame that some of these businesses are exploiting migrant workers, potentially dealing with untaxed cash and of course underpaying their workers... but at the end of the day... who cares?

  • Christopher Levingston
    Christopher Levingston Friday, 25 September 2015

    Will,
    I care because it is not right. These scams undermine the relationship between the individual and the State and when the State sits on its hands it messages the scammers that they can act with impunity. This corrupt behaviour in turn engenders a belief that it is ok to act in this way. That festering sore then infects others who engage in the same behaviour. The victims are the candidates for the visas and they think all of this is ok because they come from countries where this is common. Corruption breeds corruption it is not ok..ever!
    DIBP needs to get off its backside and discharge its protective function and act to protect the integrity of the migration program.

  • Guest
    Glen Friday, 25 September 2015

    Obviously, if they could get this information out of the visa holder, they would be able to point fingers at the RMA on non-RMA who did this. It is exploitation and MARA should do something about it. I have only been in this industry a short time, but can see how disrespectful DIBP officers can be towards RMAs. It's this negative sentiment that allows people to continually disregard the law. If case officers don't respect agents and think every RMA is potentially dodgy, then why should RMAs follow rules that are not consistently adhered to by DIBP officers.

    I was hoping that Ms Cash would have been elevated to the role on Minister for DIBP after the political musical chair game Australia is accustomed to. I thought she was more active as deputy than the actual minister who are usually also playing the political musical chair game. Please get a minister that actually understands the law rather then a figurehead with low competence on migration law.

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