How can international students avoid being exploited when working abroad?

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Published on 2023-02-28 at 14:00 by Ameerah Arjanee
Many international students work part-time to fund their studies and gain experience. They have to be aware of both their rights and responsibilities. They should not only avoid exceeding the maximum number of hours they're allowed to work and file their taxes, but they also need to be on guard against exploitative employers who can take advantage of their lack of familiarity with local labor laws.

Be careful not to exceed the number of part-time work hours allowed 

All countries set a maximum number of working hours for international students. You entered the country on a student visa, not a work visa. Exceeding these hours will make you breach the terms of this specific type of visa. Students who surpass these hours risk getting their visas revoked and getting deported.

That limit tends to be around 20 hours per week in most countries. For instance, in the UK, international students can work a maximum of 20 hours per week during their semesters but work full-time during breaks between semesters. The British government is considering increasing that to 30 hours during semester time to alleviate the local labor shortage, but they haven't made any final decision yet. Students are allowed to distribute these 20 hours between multiple jobs. For instance, one student might choose to spend 10 hours babysitting and 10 hours as a paid research assistant.

The exact same weekly limits are in place in France, Canada, the US and New Zealand. In Germany, the maximum number of hours isn't the same for EU/EEA and non-EU/EEA students. The former can work a maximum of 20 hours a week during semesters and full-time during breaks. However, the latter are restricted to the equivalent of 120 full working days per year, which is equal to around 840 hours annually or 70 hours per month (that is, if you plan on working every month).

In Australia, international students can exceptionally work over 40 hours per fortnight until June 30 of this year. This is a temporary measure to help alleviate the severe labor shortages in the country. As of July 2023, they might only be allowed to work 20 hours per week again, unless the government takes a new stand on this question.

Be tax-compliant if you are earning income while studying 

Do you need to file a tax return on your part-time earnings? It depends on the country. In the US, it's compulsory. Actually, you need to file a tax return even if you do not work at all. The IRS (Internal Revenue Service) requires all international students on an F or J visa to file the yearly Form 8843. If you've earned income, you also need to file Form 1040NR-EZ. This needs to be completed even if you've earned less than the taxable income threshold ($13,850 in 2023).

In New Zealand, filing taxes as a working international student is also compulsory, even if you make under the taxable threshold (14,000 NZD in 2023). You need to get an IRD Number from the Inland Revenue Department before your first day at work if you are to be legally paid by your employer.

In Australia, if you earn less than the taxable income threshold, which is 18,200 AUD in 2023, you can opt out of filing your taxes. But doing so is still in your favor because you're likely to get a tax return. Taxback.com says that the average tax resident gets an average of 2,600 AUD back as refund. It's the same situation in Canada: if you earn under 15,000 CAD in 2023, you are not required to file your taxes, but doing so might get you a refund or access to benefits. For one, international students who have been in Canada for at least 183 days are eligible for child benefits if their dependents are under 18.

Of course, in both Australia and Canada, if the income you earned is above the tax-free threshold, you do need to pay taxes. Both countries tax all of their fiscal residents on their worldwide income, but you can get foreign tax credits if your home country has a treaty with these countries. New Zealand also taxes worldwide income in the absence of tax treaties. 

How about the UK? As long as your country has a double-taxation treaty with the UK, you shouldn't have to pay any taxes on income that you earn in the UK or overseas and that's used to cover basic necessities (tuition fees, food, rent, transport, utilities, study materials). But if this income is used on other non-essential expenses or your country has no treaty with the UK, you may have to pay taxes like any other resident on them.

In Germany, international students generally work part-time in what are called “mini-jobs,” which involve less than 15 hours of work per week and a maximum earning potential of €450 a month. Here, you will personally not have to file any taxes because it's your employer who bears the responsibility of paying 2% of your gross earnings to the state. How about if you work for 15 to 20 hours and earn over €450 a month? You will need to pay both income tax and social security, but, as the student taxation guide compiled by ESMT Berlin says, you can claim multiple deductions for things like accommodation, the cost of commuting to campus, or interest paid on your student loans.

As for France, the obligation to file your taxes depends on your age. International students over 26 need to file their taxes even if they've earned less than the taxable threshold of €10,777 in 2023. Meanwhile, younger students under 26 only need to file taxes if they've earned over 4,690 € in a year.

Your rights: you are entitled to the minimum wage even as a student 

You should be compliant with labor and taxation laws not only to avoid getting into trouble with the authorities but also to be able to seek help from these authorities if your employer turns out to be abusive. 

Too often, international students who are desperate for money and naive about the country fall prey to abusive employers. International students who do undeclared casual work, breach the limits of their student visas, or drop out to work full-time can find themselves isolated when they need to seek help. They become so scared of being fined, jailed, or deported themselves that they do not contact the authorities – whether that's the police, their country's embassy, or even student associations/NGOs.

The PIE News reports that last year, more than 50 Indian students in Wales were found to be working under conditions that can be qualified as modern slavery. The Graduate Visa in the UK currently allows international students to drop out of their course and switch to work if they get an appropriate job offer, but unfortunately, this flexibility has been misused by some unethical employers. 

These Indian students had dropped out to start working full-time in Welsh nursing homes. Unfortunately, they were paid incorrectly (below the minimum wage or not enough for the tasks performed), their wages were often withheld, and they looked malnourished when they were finally detected by the authorities. As an international student, you should be informed of the minimum wage in that country. There's sometimes a lower minimum wage for students of undergraduate age, but employers are still not legally allowed to go below this lower wage. 

In the UK, for instance, the minimum wage for 18-20 year-olds is £7.49/hour, for 21-23 year-olds is £10.18/hour, and for anyone over 23, it is £10.42/hour. Even if you are a 20-year-old student with no prior work experience and few marketable skills, you should not be paid less than £10.18 for any kind of job, no matter how casual it is and no matter if it's performed for a relative, an acquaintance or someone from your country of origin.

Indeed, it is illegal to sign an agreement with the employer saying that you are renouncing the right to the minimum wage – this paper is null in the eyes of the law. The exploiters in the Wales case were Indian expats themselves – you should be wary of people who use their shared cultural heritage or provide a feeling of familiarity (especially if you are homesick) in exchange for you giving up your labor rights.

If you are doing an internship, check the local laws concerning paying wages to interns. Interns generally need to be paid in countries of the European Union. For instance, in France, all internships longer than 2 months should be paid at least €4,05 per hour. In Germany, you are eligible for the minimum wage (currently €12.00) if you are doing a non-mandatory internship of at least 3 months. If the internship is shorter or not a course requirement, the employer has the right not to offer any wages. 

In non-EU countries, such as Australia, the United States, and Canada, any internship can, unfortunately, be fully unpaid. In the UK, you are legally entitled to the minimum wage if you have been promised a work contract at the end of the internship. If not, being paid is something you should negotiate with the employer and is not a matter of the law.

Your rights: other red flags to watch out for

Some young people working part-time abroad might neither be students nor interns – they might instead be on a Working Holiday Visa (WHV). This kind of program has faced criticism in the countries where it exists because of cases of exploitation. 

In Australia, the Retail Supply Chain Alliance has called for the end of the WHV program. Among various reasons, they cite that young international backpackers are housed in “shoddy accommodation” in the remote countryside, are overworked and underpaid, and are both verbally and physically abused by overseers. In 2019, the hashtag #88daysaslave trended on social media from former WHV workers in Australia who complained of the mistreatment they endured, such as 75-hour working weeks.

While the WHV program still exists in Australia, the government has clarified that all workers, even if they are temporary and non-residents, are entitled to fundamental labor rights. The website of the Department of Home Affairs says that foreign workers should contact the Fair Work Ombudsman – the FWO, a governmental branch – as soon as possible if they face abuse such as threats to have their visa canceled, unfair deductions (e.g., for transport), being asked to pay a deposit to work or being qualified as a contractor rather than an employee who is protected by rights. 

As someone who enjoys the same labor rights as any other resident, please also do research on how long your lunch breaks should be, how many sick leaves you can take, and what travel or meal allowance you are entitled to, and under what conditions you can work from home. In Canada, for instance, you should be able to take 3 paid sick leaves per year as a part-time worker. In France, all part-time workers need to be paid 10-25% more per hour for overtime that is not in their contract but is still within legal limits.

In times of labor shortage or economic crisis, suspect recruitment agencies or job adverts can start popping up everywhere. They target the vulnerable, including international students. Before contacting a recruiter whose advert you saw on social media or public transport, please talk to the university's Career Services, lecturers you are close to, or local friends about it. Have they ever heard of this recruiter? Do they know someone who got recruited by them?

If you are a student, it's always best to look for a part-time job through the university itself – this way, they might protect you throughout your work experience. If you're not very confident in communicating in the country's language, having bilingual friends, embassy contacts or administrative contacts will help you successfully report abuse to the authorities if it happens. It's important to be well-surrounded – why not join a student association or union? If, after digging deeper with the help of your contacts, you find that a recruitment agency is a scam, report them immediately to the police.

What are some other red flags to watch out for? Employers who insist on paying you in cash rather than through a bank transfer can be a red flag. Sometimes, it's harmless, but in many cases, that employer is trying to avoid keeping records of his payments to you (e.g., payslips) so as to have more freedom to exploit you or evade corporate taxes. It's always safer to have a written work contract and receive your salary through the bank. 

Also, avoid jobs that try to convince you to pretend to be “contractor” when you are actually clocking into work regularly as an employer. This malpractice is called “sham contracting.” They are usually trying to strip you of your rights, such as the right to paid sick leaves. A self-employed plumber, who is an independent contractor, is obviously not entitled to paid sick leave the way a part-time barista with clearly-defined working hours is.