Fair Work Ombudsman targets ag sector

Employers who underpay their workers in the agricultural sector have been the focus of an ongoing crackdown, with Fair Work Ombudsman inspectors investigating 447 businesses in regional Australia since December 2021.

In that time, the FWO reports it has fined employers a total of $316,860, while also recovering $72,301 for underpaid workers.

Site inspections focus on ‘hot spots’ where FWO intelligence suggests non-compliance may be rife. The government watchdog reports it has found mixed results from region to region, with areas such as Riverland, Mildura, and Coffs Harbour “stubbornly non-compliant”, while others including Wide Bay, Moreton Bay, Stanthorpe and Manjimup revealing “much-improved workplace practices”.

The most recently inspected regions include the Sunshine Coast, the Lockyer Valley, and the Riverina.

The FWO reports it has so far issued 98 infringement notices for pay-slip and record-keeping breaches, with 86 of those fines going to labour-hire companies. Only 12 fines went to growers.

The body says the agricultural sector will remain a high priority throughout 2023 and 2024, because of the sector’s reliance on vulnerable workers, including visa holders.

“With very high numbers of visa holders in the workforce, too many agriculture employers are breaching record-keeping and pay-slips laws, which are the bedrock of workplace compliance,” said Fair Work Ombudsman, Anna Booth.

“It’s a red flag if workers are not issued pay slips, can’t identify their employer, and are paid cash-in-hand by individuals seemingly unrelated to the apparent employing entity. We see this all too often in multi-level supply chains.

“Breaches of record-keeping and pay-slips laws often indicate increased risks of underpaying workers as well as non-compliance with other Commonwealth laws. Employers should access our free resources and get it right, or they will continue to face fines, backpayments, and legal proceedings.”

A total of 48 compliance notices have also been issued, resulting in backpay for 184 workers. Of these, 26 were issued to labour hire firms and 22 were issued to growers. Some 25 notices were in relation to an employer’s record keeping for hours worked by a pieceworker.

“Part of our agriculture focus is keeping a close eye on pieceworker-related compliance following last year’s Horticulture Award changes,” Ms Booth said.

“Overall across the sector, while there is room for improvement, we are pleased to have met many compliant growers who have been happy to see us out helping to enforce a level playing field among the crops and fields across the country.”

Random and unannounced inspections will continue throughout this year and the next.

“Labour hire entities and growers are on notice,” said Ms Booth. “They may get a visit from Fair Work Inspectors very soon – and we will take enforcement action where appropriate.”