More than a third of young workers are exploited by their employers, according to a recent study, with many being paid less than the minimum wage. These workers are often forbidden from taking entitled breaks, forced to cover work-related expenses, or given food and products in lieu of money instead of being paid properly.
Young individuals are particularly vulnerable to wage theft due to a lack of workplace experience and limited knowledge of their rights. They are also more likely to be employed in uncertain and insecure positions, which can lead to fears of retaliation.
The Melbourne Law School’s research, involving 2,814 workers under the age of 30, discovered that approximately one-third of these individuals were paid $15 per hour or less, significantly below the minimum wage of $24.95. Additionally, almost 25% of the surveyed workers did not receive their superannuation payment.
Exploitation also extended beyond underpayments, with over a third not being compensated for work done during trial periods and almost 10% receiving food or products instead of their salary. According to Professor John Howe from the University of Melbourne, who led the study, exploitation is “common” among employers.
He stated that younger workers, lacking industrial knowledge and experience, are easily taken advantage of. They are also reluctant to confront their employers, fearing job loss in their insecure work situations.
The study also found that while the overall unemployment rate is at 4.1%, the youth unemployment rate is significantly higher at 9.2%. This increased pressure on younger individuals to retain their jobs adds to their vulnerability.
Survey participants also reported being compelled to pay for work-related items, such as uniforms and training, against their will. The Fair Work Act prohibits employers from imposing “unreasonable” requirements for purchasing work-related goods and services.
Yolanda Robson, the director of the Victorian-based Young Workers Centre, stated that the findings are “damning but not surprising” and highlighted that high living costs exacerbate the issue. Young workers are reported to be more likely to give in to employer demands and less able to absorb additional work-related expenses.
Robson emphasized that these young workers are at the forefront of exploitation, with many facing issues related to paying for tuition and other fees that their employers are supposed to cover.
The centre offers free legal representation to young workers and often deals with cases where apprentices have not received their due payments for tuition and other fees.
Robson recommended that policymakers implement reforms, educate young individuals about their rights, and provide regulators with adequate resources to proactively target abusive employers.
Source: https://www.theguardian.com/australia-news/2025/jul/15/young-workers-at-the-sharp-edge-of-exploitation-as-australian-survey-exposes-wage-theft
