The federal Coalition is considering new measures that would crack down on dodgy bosses who exploit foreign workers, including introducing bigger fines and beefed-up law enforcement measures.
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Changes to the Fair Work Act could also follow, though they would be put to voters at the next election, in a move designed to strengthen protections for workers being underpaid amid mounting evidence of unscrupulous behaviour by some employers.
The move to target unscrupulous employers has, in part, been prompted by a joint Fairfax Media/4 Corners investigation that revealed alleged widespread exploitation and underpayment of foreign workers at convenience store chain 7-Eleven.
It also comes after a joint Fairfax Media/Monash University investigation found thousands of temporary foreign workers, in industries including retail, hairdressing, manufacturing, construction and hospitality, are being illegally exploited and underpaid.
Employment Minister Michaelia Cash will on Thursday unveil a high-level "ministerial working group protecting vulnerable visa holders", which will also include Immigration Minister Peter Dutton, Justice Minister Michael Keenan and Assistant Minister Kelly O'Dwyer, to lead the crackdown.
Senator Cash said the federal government had already established Taskforce Cadena in June to "investigate illegal practices in temporary visa programmes, including the activities of labour hire companies" and penalise employers exploiting foreign workers.
The new working group would look to build on the efforts of Taskforce Cadena.
"Foreign workers are important contributors to the Australian workforce and we want to ensure they continue to view Australia as a great destination," she said.
"We know that foreign workers are potentially more vulnerable to workplace exploitation and as such we have a responsibility to investigate additional measures to ensure their protection."
However, Senator Cash cautioned the working group "will focus on getting fair outcomes for workers, not creating red tape and cost for businesses".
The focus of the group will be on employers engaged in systematic underpayment of employees, rather than companies which accidentally do the wrong thing.
Raising the penalties for individuals and employers who do the wrong thing and exploit workers, as set out in legislation, are likely while a code of conduct for the labour hire industry is also a prospect.
At present, individual directors face a maximum penalty of $10,200 for the underpayment of wages under the Fair Work Act, while companies face fines of $51,000 per contravention of the Act.
Both joint investigations uncovered evidence of workers being paid less than the legal minimum wage of $17.29 per hour, with black market rates of $10-$13 an hour widespread.
The working group is expected to meet several times before the end of the year to work on new policy responses.
The Fair Work Ombudsman has received 6000 requests for assistance in the past three years from visa holders being underpaid, and has recovered in excess of $4 million in outstanding wages.
