Businesses in high-density hospitality precincts such as Fortitude Valley have been underpaying workers in order to stay competitive, a parliamentary inquiry has heard.

A six-month inquiry found wage theft was widespread in many industries, including large organisations and company franchises, and was so systemic that some bosses were including it as part of the business model.

The Queensland economy is losing billions of dollars every year because of wage theft. Credit:Louie Douvis

The Education, Employment and Small Business Committee heard numerous reports of employers engaging in deliberate forms of wage theft to increase profits and gain advantage over competitors.

In a July 2018 report on compliance in food precincts, such as the Fortitude Valley, the Fair Work Ombudsman stated "businesses operating in high-density hospitality precincts may be adopting non-compliant practices to remain competitive".