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DIBP gives in to pressure: scammed students will get amnesty

Thousands of 7-Eleven workers, mainly foreign students, who were underpaid for years will be granted amnesty if they come forward and help with the investigations by the Fairwork Ombudsman, the department of immigration has announced.

Immigration minister Peter Dutton initially refused to grant general amnesty and said that the DIBP would look into amnesty on a case by case basis – meaning students had to trust and hope that the DIBP would do the right thing if they came forward to report the abuse by their employers.

This response to the 7-Eleven pay scandal was slammed as appalling by both Lawyers and the independent panel head reviewing the matter. Labor, the Greens, unions and advocates condemned this approach as naive and one that would effectively prevent students from coming forward to help with the investigations into the biggest wage scandal in Australian history.

The DIBP has now dumped the approach announced by Mr Dutton and succumbed to the pressure from many quarters to grant amnesty to every student who comes forward to assist with the investigations.

Michael Manthorpe, the immigration department’s deputy secretary told the senate enquiry investigating the 7-Eleven scandal that international students who came forward to help the Fair Work ombudsman’s investigation, would have “no action taken against them”.

Labor Senator Kim Carr asked if this amounted to an amnesty, to which Mr Manthorpe replied: "so long as they are prepared to comply with their visa conditions prospectively, they won't be cancelled."

There have been media reports that some franchises had threatened to dob-in students who tried to make any form of claims of underpayment. This fear and the distrust of the DIBP have kept students from making claims for compensation and would have effectively allowed franchisees to get away with potentially millions of dollars in underpayments.

It is estimated that some 4000 students were underpaid for years with many owed sums in excess of $20,000. Some reports allege that many workers were paid $10 an hour before tax – well below the award rate of $24 per hour.

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  • Guest
    glen Thursday, 22 October 2015

    :( I believe that 7-eleven should pay for their actions, but amnesty to the workers who were not entirely innocent is sending a message to students that even if you purposely breach your student visa condition, as long as the company you are working for is huge, then you have reason to request for amnesty and continue breaching your visa conditions. The abuse from 7-eleven may have come to light, but old habits die hard and many would just transfer to another employer who would be willing to pay cash, with lower wages, but not report full taxes for the student visa holder.

    What about the many SMEs who are involved with underpaying foreign workers? Should anyone who come forward now, to report their employer underpaying them, be given amnesty? What about working holiday visa holders. I am aware that working holiday visa holders have accepted jobs for less than $7 an hour (some even reporting $5 an hour). Most farms are paying less than $5 an hour because the visa holder is desperate to get their 3 months in a regional area to be eligible for their 2nd working holiday visa renewal.

    This is just politics rearing its ugly head to buy sentiment from the public. Yes, companies that underpay should be held responsible for abusing the system, but the victim accepting it does not exactly encourage the abuse to stop. There are many student who entered Australia based on an SVP pathway. As soon as they land onshore, they will try to find ways to enrol in a lower level course with the motif of having more opportunities to work (often beyond the 40 hours per fortnight that they are allowed to). I have sent students away after having landed in Australia for only 3 days and requesting a change provider. They are as much a victim as they are culprits to allow this abuse to continue.

    1,000,000 international student in Australia by 2025 = more low wage workers for the future to grow Australia.

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