A survey of over 1,000 workers has found that one-in-four young workers are being paid cash in hand, leaving them unable to access their legal entitlements such as penalty rates, sick leave, superannuation and other conditions.

 

Conducted by the Australian Council of Trade Unions (ACTU) and the Victorian Trades Hall Council, the research was launched as part of the Youth Workers Conference in Melbourne.

 

ACTU President Ged Kearney said employers paid workers cash-in-hand to avoid their legal obligations and to dodge taxes.


“The illegal use of cash-in-hand payments to workers is one of the dirty secrets of the Australian economy, and is being used by employers who don’t mind ripping off the taxpayer and denying entitlements to their workers,” Ms Kearney said.


“It is appalling that at the same time we have employers running a major campaign to abolish penalty rates, we find that between 50-60% of all young workers in black market jobs are denied their basic legal entitlements including penalty rates, superannuation, annual leave, sick leave and basic notice before they get the sack.”

 

Ms Kearney said the use of cash-in-hand payments was just one example of insecure work spreading in Australia.

 

“We are seeing a rise in casual, contract and other forms of work that mean workers do not have sick leave and annual leave, and which shift risk from employers to workers.”

“Workers are increasingly doing jobs that have irregular and inconvenient hours, have limited entitlements and have no job security. Cash-in-hand work is just part of this trend, which makes it tougher for workers.”

 

A clear majority of cash-in-hand workers were not receiving penalty rates, annual leave or sick leave, and 48% not being paid superannuation.


Younger workers were more likely to work cash-in-hand than older workers, with 24% of people aged 18-29 saying they had worked cash-in-hand.

 

The full research report can be found here