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Govt to fix offshore minimum wage loophole

Posted September 5, 2008 08:28:00

The Federal Government says it will close a loophole that allowed a company to pay 16 overseas workers less than the minimum wage to work on a gas project off the Western Australian coast.

The workers were employed on 456 short-stay visas which allowed the construction company to pay them between $4 and $10 an hour.

The Australian Workers Union argues the men were working within Australia's migration zone and should have been entitled to the minimum wage.

An investigation by the workplace ombudsman found the company involved was within its rights to pay the lower amount.

Immigration Minister Chris Evans says his department will look at changing the regulations governing offshore work.

"The Department got legal advice that allowed this to occur, we have subsequently got the decision from the workplace ombudsman and so we are going to change our regulations to try and make sure this sort of thing doesn't happen again," he said.

Tags: business-economics-and-finance, immigration, government-and-politics, federal-government, australia, wa

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