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The Supreme Court of Victoria has issued penalties totalling $830,000 to an unlicensed labour hire company and its director, following legal action by Victoria’s Labour Hire Authority (LHA).

The outcome represents the largest ever total penalty for breaches of labour hire law in Australia, reflecting unlawful conduct over several years across major Victorian horticulture regions.

Mountain Harvesting Pty Ltd received more than $2.6 million in revenue by supplying over a hundred labour hire workers to farms in Woorinen and Tatura, across two and a half years of operations.

The company, and its director Hom Dawadi, targeted migrant workers with advertisements on Facebook offering work picking fruit and vegetables in Mildura, Swan Hill, Robinvale, Lilydale and Shepparton.

At least one advertisement offered a rate of $17 per hour for apple picking – an unlawfully low rate, well below the minimum in the Horticulture Award.

More than 50 advertisements were published on Mountain Harvesting’s Facebook page and Dawadi’s personal Facebook page over several years, particularly targeting Nepalese working holiday visa holders.

The Court found the company’s workers were exploited as they did not receive superannuation.

The Court also found that Dawadi lied to LHA by stating Mountain Harvesting was not already providing labour hire when he applied for a labour hire licence in July 2020. LHA refused the licence application.

Under the Labour Hire Licensing Act 2018 (Vic), it is unlawful for businesses to provide or advertise labour hire services in Victoria without a licence. 

LHA highlighted the defendants’ failure to produce information relating to payroll and taxation, and alleged that Mountain Harvesting had not paid award wages or complied with PAYG obligations.

The Court noted Mountain Harvesting’s payment of only $13,138 to the Australian Taxation Office (ATO) did not correlate with its $2.66 million in revenue.

Mountain Harvesting was penalised $750,000 and company director Hom Dawadi was penalised $80,000 for involvement in the contraventions.

Quotes attributable to Labour Hire Licensing Commissioner, Steve Dargavel:

“Ensuring labour hire companies are licensed is essential to protect vulnerable workers and improve the integrity and transparency of the industry.”

“As this decision shows, if you try to profit off the backs of vulnerable labour hire workers, you’ll pay a heavy price.” 

“Growers and other labour hire hosts should be aware – you face the same maximum penalties for engaging an unlicensed labour hire company as they face for providing unlicensed services.”

For any queries regarding this release, contact the Labour Hire Authority Media Team on 0400 301 840 or communications@labourhireauthority.vic.gov.au