Big fine for labour breach
A Melbourne-based labour hire company, AL Star Express, has received the largest penalty in the history of Australian labour hire licensing law.
The company has been fined more than $600,000 after it was found to have knowingly violated the Labour Hire Licensing Act by providing workers to various horticulture businesses in the Melbourne region without holding a required labour hire licence.
At least 16 international workers employed by AL Star Express on farms around Melbourne, including Rosebud, Koo Wee Rup, Torquay, and Devon Meadows, were found to be severely underpaid, earning as little as $17 per hour.
The exploited workers, engaged in tasks such as fruit and vegetable picking, as well as work at an egg farm and a nursery, faced mistreatment compounded by language barriers and visa vulnerabilities.
Victoria's Labour Hire Authority Commissioner, Steve Dargavel, condemned the company's actions as “unconscionable’, noting the vulnerability of the workers and the imperative need for proper vetting and licensing of companies employing such workers.
The Supreme Court of Victoria, in its judgement, underscored the need for a penalty high enough to deter similar misconduct, stating it should not be perceived as merely the cost of doing business.
Commissioner Dargavel affirmed that such stringent penalties align with the original intent behind Victoria's labour hire laws, designed to prevent dodgy providers from evading accountability through minimal fines.
The Commissioner also announced ongoing efforts to hold other rogue labour hire providers accountable, expressing determination to weed out exploitative practices within the industry.
He warned businesses engaging in such behaviour that significant penalties awaited those failing to adhere to fair labour practices.