Penalties totalling $255,000 imposed for unlicensed operation following LHA investigation into overcrowded accommodation

5 June 2025
Penalties totalling $255,000 imposed for unlicensed operation following LHA investigation into overcrowded accommodation

The Supreme Court of Victoria has imposed penalties totalling $255,000 on a horticulture company and two individuals for failing to comply with labour hire laws, following legal action by the Labour Hire Authority (LHA).

The Court found Cameron Workforce Pty Ltd (Cameron Workforce) contravened the Labour Hire Licensing Act 2018 (Vic) by providing workers to pick grapes and chestnuts to several farms in the Benalla region without a labour hire licence.

A $200,000 penalty was imposed on the business. In addition, director Linna Chiem was ordered to pay a penalty of $40,000, while Cameron Morm, who was involved in the contravening conduct, was ordered to pay $15,000.

LHA and the defendants had agreed that more significant penalties should be imposed given the circumstances of the matter, but the court considered that lower penalties were appropriate.

The penalties follow earlier Supreme Court action by LHA in 2023, which resulted in Cameron Workforce’s bank account being frozen and the company undertaking that they would not provide labour hire without a licence.

The Court found that the workers employed by Cameron Workforce did not:

  • receive the minimum hourly rate under the Wine Industry Award
  • receive superannuation contributions
  • have income tax withheld from their wages
  • authorise in writing for a $100 accommodation fee to be deducted from their wages
  • have written contracts or receive payslips.

The workers were also accommodated in overcrowded and substandard housing owned by Chiem.

Many of Cameron Workforce’s workers were in Australia as part of the Pacific Australia Labour Mobility (PALM) scheme. Under the scheme, workers can only work for their approved employer. The court found Cameron Workforce was not approved by the federal government to employ any PALM scheme workers.

Cameron Workforce, Chiem and Morm had knowledge of labour hire licensing laws when they contravened the Act. Morm had received a warning from the Queensland labour hire regulator for operating without a licence; and Cameron Workforce applied for a licence in Victoria after it commenced operations.

LHA informed Cameron Workforce that it intended to refuse the application, and the application was then withdrawn.

Under the Act, providers must comply with all relevant workplace laws, and LHA works closely with other agencies and regulators to ensure non-compliance can be investigated and enforced across different workplace laws and obligations.

Given the defendants’ non-compliance with a range of laws, LHA will make referrals to other relevant regulators.

“Labour hire workers in the horticulture industry are among Victoria’s most vulnerable, so the industry is a key focus for our expanded compliance and enforcement program,” said Labour Hire Licensing Commissioner, Steve Dargavel.

“LHA will use all the tools at its disposal to remove exploitative businesses from the labour hire industry,” Commissioner Dargavel said.

Working with local agencies to protect and prevent exploitation

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 particularly vulnerable.

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

LHA began its investigation into Cameron Workforce following a report alleging vulnerable workers were being housed in overcrowded accommodation at a property in Benalla, and were working for an unlicensed provider.

Overcrowded bedrooms, with men and women sleeping on mattresses on the floor

Photos of the property showed:

  • overcrowded bedrooms, with mattresses on the floor
  • unsafe, outdoor cooking facilities, with multiple electricity cords hanging from the roof to power appliances.

LHA took immediate steps to assist the labour hire workers at the property. Emergency accommodation, food, clothes and other support were facilitated for workers through the Community Connections contact for PALM scheme workers.

LHA reported the matter to other relevant agencies, including Benalla Regional City Council (BRCC). BRCC subsequently wrote to the property owner Chiem in relation to the three properties it had inspected, outlining its concerns regarding unregistered rooming houses and alleged breaches of the Public Health and Wellbeing Act 2008 (Vic).

Unsafe, outdoor cooking facilities, with multiple electricity cords hanging from the roof to power appliances

Host businesses upset about being misled

Through its investigations, LHA officers spoke to several farm and winery owners to whom Cameron Workforce had provided workers.

Each host business had been misled by Chiem and Morm into believing that workers were being provided by a licensed business. The hosts received invoices in the name of the licensed business, but the bank account details on the invoices were that of Cameron Workforce.

One host said they “felt sick” when LHA advised them that they were paying an unlicensed provider, and that they would be willing to ensure any underpaid workers were paid properly.

“This has certainly highlighted that we need to reconfirm details when hiring labour contractors and will definitely ensure this is done in the future”, another host who assisted the investigation told LHA.

A provider interviewed said they were “happy to see LHA taking action against unlicensed businesses as it was impossible to compete with them when they are not paying workers and meeting their other obligations.”

LHA communications campaign for horticulture hosts

A communications campaign targeting hosts in the horticulture industry was launched in May across digital, social media and press channels and will run during June.

Advertisements prompt hosts to protect their business and their workers by ensuring they only use licensed labour hire providers, and to use the tools on the LHA website to check licences.

Information for hosts – along with English and translated versions of posters, handouts and digital assets are available for download on the Horticulture hosts webpage.

Compliance and enforcement in horticulture

The horticulture industry continues to be a focus of LHA compliance and enforcement, with significant outcomes: