• Compliance & enforcement

The Labour Hire Authority (LHA) has imposed conditions preventing a labour hire provider operating in horticulture from charging workers for accommodation, after LHA inspections found 22 workers housed in unsanitary conditions in a single home and granny flat.

LHA identified serious issues at the property, including:

• a malfunctioning septic system, causing foul-smelling effluent to pool in the front yard
• extensive mould in most rooms, affecting walls, ceilings, windows and curtains
• only one smoke alarm on the property
• inadequate facilities, including a bathroom sink missing a hot water tap and a non-functional kitchen exhaust fan and stove hot plate
• a non-functional washing machine, forcing workers to hand-wash their clothes.

A motel also used to house workers was similarly overcrowded, with 13 people occupying bedrooms that permitted 8.

Kyshan Pty Ltd (Kyshan), provides workers, including those in the Pacific Labour Mobility Scheme (PALM), to farms in the Warragul region.

In December 2025, LHA conducted unannounced inspections of two properties in Warragul.

LHA inspectors found that Kyshan had been providing accommodation to 53 workers at two properties – a four-bedroom house with a stand-alone granny flat, and a motel – in conditions that raised considerable concerns about their health and safety.

LHA inspectors identified no working smoke alarm in the three-bedroom residence above the motel’s reception, and indications of controls placed on workers’ use of: 

• showers
• washing machines
• heating and cooling.

Inspectors also formed the view that the $190 weekly accommodation deduction from workers’ wages was unreasonable in the circumstances.

LHA met with Kyshan and the Commonwealth Department of Employment and Workplace Relations (DEWR) to discuss its concerns.

Kyshan stated that it had been unaware of the conditions, and committed to take a range of immediate actions to improve affected workers’ living circumstances.

LHA worked closely with the Baw Baw Shire Council, who conducted its own inspections and took immediate action to protect the affected workers and the local community.

LHA also engaged with affected workers, who expressed a preference to stay in the accommodation or female-only accommodation.

Imposing licence conditions to protect workers

Taking into account the preference of the workers and Kyshan’s stated commitment to comply with the conditions and cooperate with LHA’s ongoing investigation, LHA imposed conditions on Kyshan’s labour hire licence on 12 December 2025.

The licence conditions: 

• directed Kyshan to immediately cease any accommodation deductions from impacted workers’ wages, which resulted in each worker saving $190 a week in the lead up to Christmas and beyond. 
• prohibited Kyshan making future deductions until LHA is satisfied that Kyshan has consulted with the impacted workers, inspected the properties and confirmed the accommodation meets minimum accommodation standards. 
• required Kyshan to notify all its Victorian workers that conditions have been placed on the licence, explaining minimum accommodation standards and inviting workers to make a confidential report to LHA if they believe their accommodation does not meet the standards. 

LHA will continue to investigate Kyshan and may take additional licensing action, including licence cancellation, if appropriate or if further non-compliance is identified. 

LHA's actions have resulted in workers being moved into newly built accommodation where each worker has their own bedroom and shares cooking and bathing facilities with no more than three other tenants.

The conditions are a warning to other providers – placing your workers in overcrowded or unsafe accommodation does not pay. You also risk losing your licence.

Preventing exploitation of vulnerable workers in horticulture, and meeting minimum accommodation standards

The horticulture industry continues to remain a focus for LHA. Horticulture employs thousands of workers in Victoria through labour hire providers and unfortunately it is an industry that has historically seen significant worker exploitation.

Disengaged PALM scheme workers – who may be lured away from their approved employer with promises of more work and better conditions from rogue operators – are vulnerable, particularly where the PALM scheme fails to provide meaningful income relative to deductions.

When incidences of alleged worker exploitation are identified, LHA works with local agencies and councils to ensure the safety and security of workers affected.

Any housing procured or supplied for workers by a provider must comply with applicable minimum accommodation standards, such as the Public Health and Wellbeing Act 2008 (Vic).

Accommodation must be registered with the relevant local council and comply with standards about:

• overcrowding
• maintenance
• cleanliness
• minimum toilet and bathing facilities.

LHA compliance officers routinely inspect accommodation facilities during site visits, especially when there are concerns about meeting minimum standards.

In June 2025, a horticulture provider and two individuals were issued penalties of $255,000 by the Supreme Court of Victoria for failing to comply with labour hire laws. The provider, Cameron Workforce Pty Ltd, was also found to have accommodated workers in overcrowded and substandard housing.

For more information on providers’ obligations around accommodation, including minimum standards, visit the Accommodation web page.