The Fair Work Ombudsman (FWO) has launched a fresh wave of inspections across the horticulture sector following damning findings from a three-year national compliance strategy. The new campaign zeroes in on labour hire providers and will focus first on businesses in the Riverina region of New South Wales.
The FWO’s Horticulture Strategy 2021–2024, which involved surprise audits of over 500 employers, has uncovered persistently high rates of non-compliance with workplace laws, especially among labour hire firms. In some regions, more than 80% of employers failed to meet their obligations under the Fair Work Act.
Five Hotspots Identified for Reinspection
The regulator will now revisit five of the worst-performing regions:
- Mornington Peninsula & Yarra Valley (VIC): 83% non-compliance
- Riverina (NSW): 72%
- Sunraysia (VIC): 70%
- Shepparton (VIC): 63%
- Coffs Harbour & Grafton (NSW): 61%
Other hotspot regions included: South Australia’s Adelaide and Adelaide Hills; Queensland’s Whitsunday Coast, Lockyer Valley, Sunshine Coast, Stanthorpe, Wide Bay, and Moreton Bay; South-West WA; and North/North-West Tasmania.
Each of these regions recorded significantly higher breach rates among labour hire providers compared to growers who directly employ their workers. Of the $760,405 in fines issued nationally for record-keeping and payslip breaches, a staggering 91% were directed at labour hire firms. Only 15 fines were issued to growers that employed workers directly.
Weak Links in Compliance & Record-Keeping
Inspectors found labour hire providers were four times more likely to breach workplace laws than growers. Common issues included:
- Poor or absent record-keeping
- Cash-in-hand payments
- Lack of transparency on who the actual employer was
- Use of informal ‘supervisors’ acting as intermediaries
Failures in record-keeping and providing workers with non-compliant or no pay slips were the most common breaches by employers across the national campaign.
These failures resulted in the FWO recovering $384,168 in wages for 464 underpaid workers after issuing 95 Compliance Notices: 55 to labour hire providers and 40 to growers.
Fair Work Ombudsman Anna Booth said the findings underscore the ongoing need for accountability in supply chains.
“Our inspectors will return to these five troublespot regions with a focus on labour hire providers, who made up 80% of non-compliant employers in these locations,” she said.
“We will also continue and increase our successful collaboration with other Australian Government and state regulators to ensure a comprehensive approach to holding to account employers doing the wrong thing.”
Queensland’s Leading Example
Employers assessed in Queensland’s Wide Bay and Moreton Bay regions were the nation’s most compliant, with only 18 per cent and 8 per cent, respectively, having not met obligations. These outcomes were linked to a greater proportion of direct employment, proactive education efforts, and the impact of programs like Fair Farms.
Why This Matters for Agribusiness Employers
With the horticulture sector employing a high number of seasonal, migrant, and visa workers, especially during peak harvest periods, reputational and regulatory risks are significant. The findings serve as a timely reminder for agribusiness operators to:
- Review labour hire contracts and oversight practices
- Ensure robust record-keeping and payslip systems
- Engage only licensed and reputable labour hire providers
- Take advantage of Fair Work’s free educational resources
The FWO’s renewed campaign will unfold over the next two years, backed by partnerships with the Australian Border Force, ATO, and state-based labour hire regulators.
Enforcement in Action
One high-profile enforcement outcome included an Enforceable Undertaking signed by Victorian grower R J Cornish & Co Pty Ltd in early 2025, after nearly $127,000 in unlawful deductions were made from 112 workers’ wages.
As the FWO continues to pursue one remaining open investigation with possible high-level enforcement action, the message to industry is clear: non-compliance has consequences, and enforcement will continue to intensify.
Sources: Fair Work Ombudsman, FWO Horticulture Compliance Report