This week, the Fair Work Ombudsman (FWO) and the Australian Border Force (ABF) conducted surprise inspections across Sydney, focusing on businesses that employ migrant workers.
Where inspections took place
About 40 businesses were visited in areas including Blacktown, Cabramatta, Chatswood, the Hills District, Hurstville, and Parramatta.
The sectors most affected were:
- Hospitality – cafés, restaurants, and fast food outlets
- Hair & beauty
- Health services
For many SMEs, these are familiar industries where finding and keeping staff is already a challenge.
What inspectors are checking
The visits were not just about enforcement — they were about ensuring businesses understood their obligations. Inspectors looked at:
- Wages and entitlements – checking pay slips, time records, and ensuring workers are being paid correctly
- Job advertisements – reviewing ads to make sure they meet Fair Work Act standards
- Past issues – following up on any previous non-compliance
- Education – updating employees on changes to workplace laws, including the Right to Disconnect, which now applies to small business employees (from last month)
Special attention was given to businesses employing sponsored visa holders under the Temporary Skills Shortage (subclass 482) program. Roles like chefs are among the most common under this visa.
Focus on protecting migrant workers
ABF officers also made sure that:
- Visa holders were working in the jobs they were sponsored for
- Workers had the same conditions and protections as Australian employees
- Employers understood their responsibilities under the Migration Amendment (Strengthening Employer Compliance) Act, introduced in July last year
This Act gives stronger protections to migrant workers and tougher penalties for employers who exploit them.
Key messages from regulators
Fair Work Ombudsman Anna Booth explained the reasoning behind these inspections:
- Migrant workers can be more vulnerable to exploitation
- Many don’t know their rights, or hesitate to speak up if something is wrong
- It’s critical they understand they have the same rights as all workers in Australia
She also highlighted that the hospitality sector remains a priority area for compliance, encouraging SMEs to use the free resources and advice available from the FWO.
ABF Commander John Taylor reinforced the message:
- Australia will not tolerate businesses exploiting migrant workers
- Employers must check visa work rights through the Visa Entitlement Verification Online (VEVO) system
- Using someone’s immigration status to exploit them is now a criminal offence
Penalties for breaches are severe — up to two years’ jail and/or fines of $118,800.
What this means for SMEs
For small and medium-sized businesses, especially in hospitality and services:
- Compliance is not optional – inspectors are actively checking businesses like yours
- Getting it wrong is costly – beyond fines and reputational damage, non-compliance makes it harder to attract and keep staff
- Support is available – the FWO provides free tools, templates, and direct advice to help you meet your obligations
Key takeaway
Now is the time to double-check your records, contracts, and job ads. Make sure wages and entitlements are correct, especially for visa holders. Staying compliant doesn’t just protect your business from penalties — it strengthens trust and credibility with your team.