New report has found 1 in 3 young people have been underpaid

A third of young workers have been underpaid and exploited, according to a new report from the University of Melbourne Law School.

The report found young people are “especially vulnerable” to being exploited at work.

Here’s what you need to know.

Survey

University of Melbourne researchers surveyed more than 2,800 workers aged 15-30 about the conditions at low paying jobs they had held.

Around 60% of workers surveyed had been paid the least at casual jobs.

Almost one-quarter were in retail.

Wages

The national minimum wage is currently $24.95 per hour. Few workers are actually paid this rate, but it is used as a benchmark for award agreements and other pay structures.

Employees under the age of 21 (‘juniors’) are paid a percentage of the relevant rate for their job, depending on their age.

The report found that even taking junior rates into consideration, 33% of young workers had “likely” been underpaid.

Around 10% of respondents had been paid $10 an hour or less.

Other findings

More than one in three workers surveyed had been forbidden from taking breaks, had completed unpaid trials, and had had their employers reduce their timesheet hours.

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Around 10% of workers surveyed had received goods such as food instead of money, or had been forced to return pay to their employer.

More than half of young workers surveyed had not been paid overtime to which they were entitled.

One in five had not been paid for work they had done.

Factors

Researchers attributed young workers‘ vulnerability to exploitation to several factors:

Not knowing about the entitlements they could access
High rates of casual and informal work
Not having “leverage” to negotiate.

The report also identified “indicators” that made people more likely to be exploited, including gender diversity and being from culturally and linguistically diverse backgrounds.

Response

The United Workers Union told TDA that the cost of living hits “young workers just as hard as anyone else”.

It called for junior rates to be abolished, calling them “an outdated form of age discrimination”.

The Retail and Fast Food Workers Union told TDA: “Exploitation of vulnerable workers is endemic in Australia… those who exploit our youngest and most vulnerable workers must face the full force of the law.”