• Compliance & enforcement

A company director has had luxury assets seized for their failure to pay penalties imposed by the Supreme Court of Victoria following legal action by the Labour Hire Authority (LHA).

Under instruction from LHA, high-value items were seized from the individual's home including:

• a luxury Maserati motor car
• a 1kg bar of gold bullion
• various jewels
• numerous Louis Vuitton accessories.

The assets will be auctioned, with proceeds going toward paying the penalties originally imposed for non-compliance with the Labour Hire Licensing Act 2018 (Vic).

“Individuals who fail to comply with their licence obligations are on notice – we will use every avenue available to ensure you pay the price for your conduct,” said Labour Hire Licensing Commissioner, Steve Dargavel.

“Victoria’s licensing laws are in place to protect labour hire workers and clean up the industry, so it’s vital that we hold non-compliant companies and individuals to account,” he said.

Taking the profit out of unlawful activities

LHA has previously pursued individuals and companies for unpaid financial penalties through actions including:

• having penalty defaulters arrested and brought before a court to account for their assets and income
• having companies wound up
• securing debts with real property.

LHA can take licensing or legal action for a range of contraventions of the Act. These actions include provisions designed to directly protect workers, such as where a provider withholds pay or entitlements.

Recent LHA prosecution outcomes include:

• In December 2024, Nirrorn Labour Pride Pty Ltd and its director were issued penalties totalling $287,500 for failing to comply with licence obligations.
• In September 2024, Monorom Labours Power Pty Ltd and two directors were issued penalties totalling $263,889 for failing to comply with licence obligations.
• In September 2024, the Supreme Court of Victoria issued a total of $759,674 in penalties to five companies and three company directors for their involvement in unlicensed labour hire operations in the construction industry.

“Any labour hire operator who thinks it’s okay to flout the law and flaunt their wealth, at the expense of vulnerable workers, should expect to hear from us,” said Commissioner Dargavel.

“Legitimate businesses are as sick of rogue labour hire operators as we are,” he said.

Unexplained wealth in the labour hire industry may also be an indicator of illegal phoenix activity – where a company is liquidated, wound up or abandoned to avoid paying debts, and a new company started to continue the same business activities without the debt.

LHA continues to work with the Phoenix Taskforce to prevent illegal phoenix activity in the labour hire industry, which can result in workers missing out on entitlements, legitimate businesses being put at a disadvantage, and a loss of tax revenue used to provide community services.