Retail franchises across Australia are facing criminal charges for breaching child employment laws, with the regulator in the state of Victoria coming down hard on organisations that aren’t complying with the law. The spate of charges follows calls from retail bodies for the creation of national framework that applied consistent laws across the country. In recent weeks, a Red Rooster franchise in Wodonga, Victoria was hit with 355 criminal charges for – among other accusations – employing
oying ten children under the age of 15, without a relevant permit, on 168 occasions.
A Cold Rock outlet in Shepparton, Victoria faces 124 criminal charges relating to the employment of six children under the age of 15, while a Muffin Break cafe in Melbourne was accused of 360 charges of employing three children under the age of 15 between March and October 2022. The maximum penalty for each offence is over $18,000.
Victorian Wage Inspectorate commissioner Robert Hortle told Inside Retail that the regulator looked for non-compliance, and monitored activities as informed by data and intelligence.
He added that the child employment licensing system – which is set to replace the existing permit system on 1 July, and grant further watchdog powers – would strengthen child labour protections.
“We’ve investigated businesses from Port Fairy to Barwon Heads, from Warragul to Melbourne. We can’t be everywhere, but we can be anywhere,” Hortle said.
“Our officers have inspected businesses and found children working long hours without breaks, kids working without supervision and doing inherently risky work and businesses employing children without permits.”
If employers failed to apply for child employment permits, Hortle said that the regulator is unable to adequately assess risk, and check that their health, safety and welfare is protected.
He added that most businesses were doing the right thing, but there’s a greater risk of breaches occurring when workforces surge around school holidays, Christmas and other major events.
“Non-compliance can occur when any business takes their eye off the ball, regardless of location or industry,” he said.
“Complacency is the enemy of compliance.”
“Recipe for confusion”
Child employment laws differ depending on state and federal laws of the nation at hand.
For instance, in the United States, the Fair Labor Standards Act (FLSA) has set a minimum working age of 14 for the majority of non-agricultural work, with certain protections and exceptions including newspaper delivery and businesses owned by a child’s parent.
However, a number of US states have sought to implement (or have successfully implemented) legislation to remove child labour protections. This includes Arkansas which, in 2023, passed laws to eliminate age verification and parental or guardian permission requirements.
Other US states to introduce or pass legislation endeavouring to remove child labour protections in 2023 include Missouri, Minnesota, Nebraska, Ohio and South Dakota.
It comes amid a 37 per cent increase in the number of child labour law violations in the US between 2021-2022, with brands including Hyundai and Kia, McDonald’s, Dunkin Donuts and Chipotle found or accused of breaching US laws.
In Australia, the minimum working age also depends on the state or territory at hand. In Victoria, employers require a permit to hire anyone under the age of 15 – with certain exceptions, such as employment in advertising and entertainment, and regulations in place.
In Queensland, the minimum working age for most jobs is 13, while there’s no minimum working age across New South Wales, South Australia and Tasmania for most jobs.
The Australian Retail Association (ARA) has been advocating for a national framework around the minimum working age, with CEO Paul Zahra pushing for a model that would enable people as young as 13 to work – provided certain regulations were in place.
Zahra told Inside Retail that a national approach would ensure uniform laws were in place, while also reducing cost, complexity and risk across the country.
“The current arrangements are simply too confusing, with each state and territory having their own complex set of regulations around young people working. This is particularly problematic for national retailers,” Zahra said.
“With so many differing legislations, it is a recipe for confusion.”
Risks are magnified
According to Zahra, child employment law breaches do occur “far and wide”, but regional businesses tend to face increased economic challenges, and often face limited staff availability.
He believes that the constant retail labour squeeze can invoke a sense of urgency from employers, to the point where regulatory complexities are missed or overlooked.
Zahra added that “sensible regulations” around preventing work during school hours – and safeguarding entitlements such as leave and fair pay – would need to be implemented as part of a national framework.
“Having a set of policies or procedures that apply across Australia would undoubtedly reduce child employment law breaches,” Zahra said.
Hortle added that all workplaces have risks, but that these risks are magnified when children are part of the workplace.
“[They] don’t have the experience, stamina or judgement of more experienced workers,” he said.
“It’s great to give young workers a go, but it’s important to do so safely.”