One number every Australian venue operator should know: $315,000. That is the standard civil penalty a company faces for each worker employed without valid work rights under the Migration Act 1958. For aggravated cases, it climbs to $594,000 per worker. Individuals, including managers and directors, face up to $63,000 per worker and up to 5 years in prison.
The Australian Border Force (ABF) actively investigates and prosecutes employers who fail to verify work rights. Hospitality is one of the most scrutinised industries.
The full penalty breakdown
Civil penalties (Section 245AE, allowing an illegal worker)
Civil penalties apply where an employer has allowed a non-citizen to work without valid work rights, even if the employer did not know the worker was unlawful.
| Entity | Standard penalty (per worker) | Aggravated penalty (per worker) |
|---|---|---|
| Body corporate (company) | Up to $315,000 | Up to $594,000 |
| Individual (owner, manager, director) | Up to $63,000 | Up to $118,800 |
Aggravated penalties apply when:
- The employer has previously received a warning notice from the ABF and re-offends
- There is evidence of repeat or systematic non-compliance
- The employer has exploited the worker's vulnerable immigration status
Criminal penalties (Section 245AB, knowingly or recklessly allowing)
Criminal penalties apply where the employer knew or was reckless about the fact that a worker did not have valid work rights.
| Entity | Maximum fine (per worker) | Imprisonment |
|---|---|---|
| Body corporate (company) | Up to $315,000 | N/A |
| Individual | Up to $63,000 | Up to 5 years |
Criminal prosecution requires a higher evidentiary standard, but the ABF does pursue these cases, particularly where there is evidence of deliberate non-compliance or exploitation.
How enforcement actually works
Understanding how the ABF enforces these laws helps you gauge the real risk. Enforcement follows an escalating pathway.
Warning notices
The ABF can issue a warning notice to an employer suspected of employing illegal workers. A warning notice does not carry a direct penalty, but it puts you formally on notice. Any subsequent breach triggers aggravated penalties, nearly double the standard amounts.
Warning notices remain in effect for 5 years. If you receive one, overhaul your right-to-work verification processes immediately.
Infringement notices
For straightforward breaches, the ABF can issue an infringement notice, an on-the-spot fine. These are lower than the maximum civil penalty but still substantial. An infringement notice for a body corporate is currently $47,250 per illegal worker.
You can pay the infringement notice (which is not an admission of guilt) or elect to have the matter dealt with by a court.
Civil prosecution
For more serious or systematic breaches, the ABF refers the matter for civil prosecution. A court can impose penalties up to the maximum amounts above. Civil cases require proof on the balance of probabilities, a lower bar than criminal cases.
Criminal prosecution
The most serious cases, involving knowledge, recklessness, or exploitation, are referred for criminal prosecution. These require proof beyond reasonable doubt and can result in imprisonment for individuals.
"I didn't know" is not a defence
This is the most important legal point in this guide: not knowing that a worker was illegal does not protect you from civil penalties.
The Migration Act uses a strict liability framework for civil penalties. The question is not whether you knew the worker lacked work rights. It is whether you took "reasonable steps" to verify their entitlement.
What counts as reasonable steps
The ABF and courts consider this to be the baseline:
- Asking the worker about their citizenship or visa status before they start work
- Sighting original identity documents: passport, visa, ImmiCard, or citizenship evidence
- Running a VEVO check for any worker who is not an Australian citizen
- Re-checking VEVO at regular intervals for temporary visa holders (recommended every 3 months)
- Keeping records of all checks, including dates, results, and who performed them
What does not count
- Accepting a worker's verbal claim that they can work
- Photocopying a passport without verifying visa status through VEVO
- Checking once at hiring and never again
- Assuming an agency or labour hire company has done the checks
- Making assumptions based on a worker's appearance, name, or accent
If you cannot demonstrate reasonable steps, you are liable.
Real enforcement: it happens more than you think
The ABF runs targeted operations in high-risk industries, and hospitality is consistently near the top of the list. These operations typically involve ABF officers attending venues unannounced and interviewing workers on-site to verify their identity and work rights.
In recent years, the ABF has conducted large-scale operations across Australian capital cities targeting restaurants, pubs, clubs, and fast-food outlets. The results: hundreds of illegal workers located across single operations, multiple employer prosecutions with penalties in the hundreds of thousands, business closures where the financial damage proved unrecoverable, and individual managers and directors facing personal liability and criminal charges.
The ABF also acts on tip-offs from former employees, competitors, and members of the public. A single tip-off can trigger a full investigation.
Protecting your business: a practical framework
Given how severe the penalties are, here is a practical framework for keeping your venue protected.
At onboarding
- Every new worker completes a right-to-work declaration
- Sight original documents and take copies for your records
- Run a VEVO check for every non-citizen and save the result
- Record the visa expiry date and any work conditions (e.g. hour limits for student visa holders)
Ongoing
- Re-check VEVO every 3 months for temporary visa holders
- Re-check VEVO monthly for bridging visa holders
- Flag visa expiry dates and take action before they arrive, either confirm a visa extension or cease employment
- Audit your records quarterly to make sure every current worker has a documented work rights check
If you discover an issue
- Do not panic, but do not ignore it
- Stop work immediately for any worker found to lack valid work rights
- Document everything: what you found, when, and what action you took
- Get legal advice if you suspect a systemic issue
- Self-reporting to the ABF may be a mitigating factor, but get legal advice first
The cost of getting it wrong
If an ABF operation discovers just 3 illegal workers at your venue, you are looking at:
- Standard civil penalty: 3 x $315,000 = $945,000
- Aggravated penalty (if a warning notice was previously issued): 3 x $594,000 = $1,782,000
Add legal costs, reputational damage, potential licence ramifications, and personal liability for directors and managers. For most small to mid-size venue operators, a single enforcement action like this can finish the business.
Automate right-to-work compliance before it costs you
The penalty framework under the Migration Act is designed so that prevention is always cheaper than the consequences. VenueShield automates the right-to-work compliance process: tracking visa types, scheduling VEVO re-checks, alerting you before visa expiry dates, and maintaining the audit trail that proves you took reasonable steps. When the ABF turns up, you want to show them a system, not a shoebox of photocopied passports. See how VenueShield protects your business.
