compliance

The Role of RegTech in Preventing Temporary Visa Holder Exploitation

  • February 21 2025
  • Noor Yasmin Mohd Bahrudin
Strawberry picker

 

With an increased focus on compliance and worker exploitation across Australia, safeguarding temporary visa holders has become a high priority for businesses. International workers play a vital role in the Australian economy, filling skill gaps in sectors like healthcare, technology, and agriculture. However, their reliance on visa sponsorship can leave them vulnerable to unfair treatment. This vulnerability is exacerbated by complex immigration regulations, varied work conditions, and inconsistent compliance standards among employers.

The adoption of Regulatory Technology (RegTech) offers a powerful solution to help businesses navigate these complexities, ensuring compliance while safeguarding temporary visa holders from exploitation. By automating compliance processes, businesses can create a transparent, ethical hiring environment and mitigate risks associated with non-compliance.


Understanding the Scale of Exploitation Among Temporary Visa Holders

Temporary visa holders play a crucial role in Australia's economy, yet many face significant workplace exploitation. While underpayment remains one of the most prevalent issues, other forms of mistreatment impact these workers, including excessive working hours, unsafe conditions, lack of entitlements, and even threats to their visa status.

Underpayment Among Temporary Visa Holders

Studies have consistently shown that many temporary visa holders are underpaid, sometimes earning below the national minimum wage. According to a 2023 report from the Human Rights Law Centre, up to 66% of temporary migrants have been paid less than the minimum hourly wage, with some earning at least $3 per hour below the legal rate.

Visa Holder Category

Percentage Underpaid (%)

International Students

66%

Recent Migrants

5–16%

Migrant Workers

1–8.5% (paid ≥$3 below min. wage)

 

Sources: HRLC, Grattan Institute

Other Forms of Workplace Exploitation

Beyond wage theft, temporary visa holders often experience other exploitative conditions, including:

  • Excessive Working Hours and Unpaid Overtime
    Many migrant workers are pressured into working long hours, sometimes well beyond legal limits, without proper overtime pay. For instance, reports have documented cases of hospitality and agricultural workers clocking over 60-80 hours per week, often under informal agreements to avoid scrutiny.
  • Threats to Visa Status
    Some employers use visa dependency as leverage to exploit workers. Temporary visa holders, particularly those on employer-sponsored visas, have reported instances where employers threatened to withdraw sponsorship or falsely claim visa breaches to deter complaints about unfair treatment.
  • Unsafe Working Conditions
    Industries such as construction, farming, and food services have reported cases where temporary visa holders were exposed to hazardous conditions, including lack of safety equipment, workplace injuries without compensation, and poor living arrangements in regional areas.
  • Denial of Workplace Rights and Entitlements
    Many temporary visa holders are unaware of their rights, making them vulnerable to being denied sick leave, paid breaks, or superannuation payments. Some businesses take advantage of this by classifying workers as independent contractors to avoid paying standard employee benefits.
  • Cash-in-Hand Payments to Avoid Regulations
    Some businesses deliberately pay temporary workers in cash at below-award rates, making it difficult for authorities to track and enforce compliance. This practice is particularly common in hospitality, retail, and domestic work sectors, where informal arrangements are harder to regulate.
  • Retaliation Against Whistleblowers
    Fear of losing employment or being reported to immigration authorities prevents many temporary visa holders from reporting mistreatment. Some who have raised complaints have faced retaliatory actions such as termination, blacklisting, or being coerced into signing illegal contracts.

 


How RegTech Enhances Compliance and Transparency

RegTech solutions leverage automation, artificial intelligence, and data analytics to streamline compliance measures. For businesses employing temporary visa holders, these tools simplify processes by automating visa checks, work-hour monitoring, and other regulatory obligations. This technology provides a clear, audit-ready trail, reducing the risk of non-compliance and protecting businesses from potential fines.

Comparison: Traditional Compliance vs. RegTech Solutions

Compliance Factor

Traditional Approach

RegTech-Enabled Approach

Visa Status Tracking

Manual checks, prone to delays

Real-time automated monitoring

Work-Hour Compliance

HR-managed spreadsheets

Automated compliance tracking

Reporting & Audits

Paper-based, time-consuming

Instant digital reports

Risk of Non-Compliance

High due to human error

Reduced with automation


Key Benefits of RegTech for Protecting Temporary Workers

1. Automated Visa Tracking and Compliance

The legal requirements surrounding temporary visas are complex and subject to frequent changes. Businesses must ensure they are meeting all obligations, including verifying work rights and tracking visa conditions. Automated compliance systems provide real-time updates on visa status, helping employers stay ahead of deadlines and avoid potential legal repercussions.

2. Real-Time Monitoring and Data Analysis

Technology-driven compliance solutions offer real-time insights into employment conditions, making it easier to identify discrepancies in work hours, wages, or entitlements. By leveraging data analytics, businesses can proactively assess trends in their workforce compliance, reducing the likelihood of unintentional breaches.

3. Enhanced Reporting and Transparency

Maintaining up-to-date records on each worker’s visa status and compliance checks is essential for demonstrating ethical hiring practices. RegTech solutions offer centralised, automated reporting features that facilitate internal audits and regulatory inspections, reinforcing an organisation’s commitment to workplace integrity.

4. Reducing Human Error in Compliance

Manual compliance processes can be prone to human error, increasing the risk of visa violations or worker exploitation. Automating critical compliance functions minimises these risks, ensuring that businesses maintain accurate records while adhering to legal requirements.


Building a Compliance-First Culture

Beyond implementing technology solutions, businesses must foster a compliance-first culture that prioritises ethical hiring and workforce transparency. Employers can achieve this by:

  • Regularly reviewing visa and work rights policies.
  • Conducting routine audits to assess compliance health.
  • Providing training to HR teams and managers on immigration regulations.

By combining robust policies with RegTech solutions, organisations can not only protect temporary visa holders but also strengthen their overall workforce compliance framework.


Final Thoughts

The protection of temporary visa holders is a shared responsibility between businesses, regulators, and technology providers. As the regulatory landscape evolves, companies must proactively adopt compliance solutions that enhance transparency and mitigate risk. By leveraging RegTech, businesses can maintain a compliant workforce while fostering ethical employment practices that support temporary visa holders in Australia.


Complize: Leading the Way in RegTech Compliance

Complize, a RegTech solution designed specifically for the Australian market, provides businesses with a comprehensive compliance management tool tailored to the unique regulatory landscape in Australia. Complize’s platform is built to handle the nuances of Australia’s immigration laws, giving businesses a competitive advantage by simplifying complex compliance needs.

Through the integration of cutting-edge technology, Complize supports Australian businesses in their efforts to foster ethical and fair employment practices. By choosing Complize, companies not only strengthen their compliance protocols but also demonstrate their commitment to a safe, fair working environment for temporary visa holders.

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