Raids have taken place after allegations of sexual slavery of female hosts at the karaoke bars. With 1.3 million workers on visas, which is equivalent to one in 10 workers, it is undermining the economic fabric of the country. Besides undermining the award wage system, it is potentially robbing the Australian Taxation Office of hundreds of millions of dollars a year in tax.

Sectors of the economy including agriculture, hospitality, cleaning, convenience stores and trolley collection have been exposed as some of the worst offenders when it comes to wage fraud. In late August, Fairfax Media exposed systemic wage abuse across 7-Eleven convenience store giant. In 7-Eleven's case, many of the thousands of workers are students on visas, who are only allowed to work 20 hours a week without breaching their visa conditions. The Fair Work Ombudsman raided 20 7-Eleven stores in September 2014 and found that 60 per cent of the 20 stores raided had payroll issues. This was double the findings of a previous raid in 2011.

Around the same time, it kicked off a national review of the wages and conditions of foreign workers in Australia on the 417 working holiday maker (WHM) visa after receiving allegations that unscrupulous operators were exploiting backpackers. The latest raid of karaoke bars throws the entertainment sector into the mix, with the more sinister element of sexual servitude, which, under the Crimes Act, refers to the condition of a person "who provides sexual services and who, because of the use of force or a threat, is not free to stop providing sexual services; or to leave the place or area where the person provides sexual services". The raids took place across Melbourne and Perth on October 23, with 25 inspectors swooping on five bars. The inspectors found that the staff where largely 417 and 457 visa holders. However, no illegal workers were identified during the inspections. Staff where interviewed, photos taken and all five businesses were issued with Notices to Produce employment records for assessment. The raids followed information provided to Taskforce Cadena that female karaoke hosts on temporary visas were being exploited.

Fair Work confirmed the raids took place and that allegations included underpayment of wages, sham contracting, visa obligation breaches and potential sexual servitude. In a statement it said: "As there is now currently a live investigation under way, and the potential for enforcement outcomes arising from this activity, it is not appropriate to comment further." Taskforce Cadena was set up six months ago to address issues of illegal work and worker exploitation, including contract hire companies. Worker exploitation is being scrutinised in a Senate inquiry into visas and wage fraud. The Senate inquiry is ongoing but the evidence to date has been shocking. This coupled with an investigation into systemic wage fraud at 7-Eleven has shone a light on the Australian labour market and it has come up short.

A lack of adequate resources available to the regulators to expose wrongdoing, inconsistent workplace laws, questionable visa settings and shortcomings in the law have been harnessed in such a way to allow the exploitation of vulnerable workers. The Senate needs to make some tough recommendations to harness change, including beefing up the powers of the regulators and lifting penalties so they are big enough to become a deterrent. Under the current legislation, company directors face a maximum penalty of $10,200 for the underpayment of wages, which has proven to not be a deterrent. Companies face penalties of less than $55,000. The government needs to take up arms and enact the changes and boost the resources of regulators such as Fair Work, instead of continuing to slash them. Foreign workers are vital to the Australian economy. Some offer skills this country doesn't have, others provide services that might otherwise not be available.

Yet, many foreign workers have found themselves in a position of vulnerability which makes them targets for unscrupulous behaviour. These behaviours are doing immeasurable damage to this country's reputation.