Breaks forbidden, food instead of pay: one third of young Australian workers exploited by employers, study shows

The Guardian

14-07-2025

More than one-third of young workers are exploited by their employers, according to a new study, with many paid less than the minimum wage, forbidden to take entitled breaks, compelled to pay for work-related items, or given food and products instead of money.
Young people are seen as especially vulnerable to wage theft due to inexperience in the workplace and a lack of awareness of their rights. They are also more likely to be employed in insecure roles than experienced workers, raising fears of retaliation.
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The Melbourne Law School's survey of 2,814 workers aged under 30 found that one-third were paid $15 an hour or less, far less than the minimum wage of $24.95, while one-in-four workers reported not being paid superannuation.
The exploitation extended beyond underpayments, with more than one-third not paid for work conducted during a trial period, and almost 10% given food or products in lieu of pay.
The study's lead, Prof John Howe from the University of Melbourne, said wage exploitation was 'rife' among employers.
'Young people don't have much industrial knowledge or experience, so are easy to take advantage of,' said Howe.
'They are also unlikely to challenge an employer, as many of them are in insecure work and they worry about losing their jobs.'
While the official unemployment rate is 4.1%, the youth unemployment rate is 9.2%, increasing the pressure on younger people to keep their jobs.
The report notes that the burden falls on young people to report exploitation, when there should be more resourcing for proactive detection by regulators. Underpayment disproportionately affects those on lower wages, overseas students, migrant workers and women.
Survey respondents also reported numerous instances of being compelled to pay for work-related items, including training and uniforms. The Fair Work Act prohibits employers from 'unreasonable' requirements to purchase goods and services related to work.
The report notes that young workers are the 'most likely to acquiesce to employer demands and the least able to accommodate additional expenses relating to their work'.
Yolanda Robson, the director of the Victorian-based Young Workers Centre, said the report's findings were 'damning but not surprising', and that high living costs were exacerbating the problem.
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'I can hardly imagine, in today's world, having to pay out-of-pocket to show up ready for work with a uniform, given the cost-of-living pressures we're experiencing now,' Robson said.
'Young people are at the sharp edge of exploitation.'
The centre, which offers free legal representation to young workers, routinely advises apprentices with bosses who have skipped out on paying their tuition and other fees.
While employers are usually required to pay Tafe costs for apprentices, the student often bears the consequences, according to Robson, which can include being chased for debts.
Robson said until there is system reform, policymakers should adopt a strategy of educating young people on their rights, and funding regulators to be more proactive in their pursuit of bad employers.
Have you experienced financial exploitation at work? Contact [e-mail]