• Compliance & enforcement

The Labour Hire Authority (LHA) continues to target non-compliance in high-risk regions and industries, with inspections at citrus and garlic farms in Mildura last month.

As part of the operation, LHA officers interviewed workers and key staff from hosts and providers and collected financial documents to enable the investigation of potentially unlawful conduct.

During the operation, inspectors interviewed a Pacific Labour Mobility Scheme (PALM) worker who alleged their employer was withholding their passport. The worker’s supervisor confirmed they were withholding passports to prevent workers absconding.

Withholding a passport can be an indicator of human trafficking, slavery or forced labour. It can restrict a worker’s ability to move freely, leave employment, and seek help.

LHA cautioned the supervisor about this practice and told them to return the passports. LHA also referred this matter to the Department of Employment and Workplace Relations, which manages the PALM program, and to the Australian Federal Police.

During the visits, LHA inspectors:

• identified evidence of potential underpayment of workers, including unlawful group piece rates being applied
• observed potential health and safety non-compliance
• interviewed workers who raised concerns about overcrowded accommodation.

Investigations are ongoing into potential non-compliance uncovered during the visits.

The horticulture industry has historically seen significant rates of worker mistreatment and exploitation, including due to the high proportion of temporary migrant and PALM scheme workers.

The site visits are part of LHA’s compliance and enforcement program that targets high-risk industries and regions of significant concern, to improve industry integrity and transparency.

New licence conditions in high-risk industries

For providers operating in industries with higher risks of worker exploitation and unlawful conduct, LHA applies standard conditions to all new licences, as well as progressively to existing licences. 

In the high-risk industries of horticulture, meat and poultry processing, commercial cleaning, and security, these standard conditions act to further:

• increase transparency, by ensuring all workers receive information on their rights, and through reporting on the use of subcontractors, payroll services, and any change in industry
• enforce integrity, through restrictions on cash payments, the use of independent contractors and subcontractors, and clear requirements around accommodation and provision of PPE. 

For more information and guidance:

• See this month’s story in LHA News
• Visit the licence conditions page.

Targeting high-risk regions

Unlawful labour hire companies continue to target growers in the Mildura and surrounding Sunraysia region, putting host businesses at risk of fines, disruption and involvement with criminal elements.

The region was highlighted in the Fair Work Ombudsman (FWO)’s Horticulture Compliance Report published last year as having ‘very high’ risk for non-compliance with workplace laws.

Since being established in 2019, LHA has taken more compliance and enforcement action against labour hire businesses in horticulture than in any other industry area.

This includes refusing more than 248 licence applications and cancelling over 301 licences in Victoria’s horticulture industry, preventing non-compliant businesses from operating.

The Sunraysia region remains a focus for LHA compliance and enforcement activities, with close to a quarter of all licence refusals and cancellations for horticulture linked to businesses based in the region.

LHA continues to conduct compliance operations in the region, with recent site visits in June 2026 and July 2025, and has successfully prosecuted businesses for unlawful conduct, including:

• in June 2026, a record $830,000 in penalties were issued to an unlicensed provider who advertised for horticulture work in Mildura
• in March 2026, four people were arrested after an LHA investigation into alleged money laundering operation in Mildura
• in July 2025, penalties of $91,000 were issued to a Queensland business and director who advertised unlicensed for grape workers in Mildura.

LHA will continue its focus on Sunraysia and other Victorian regions identified as high-risk.

Actions for hosts – protect your business

Some labour hire companies use misleading or deceptive conduct to attempt to conceal unlawful or criminal activities – this conduct can be directed towards hosts, as well as LHA.

Licence fraud – identified by LHA as a continuing issue – is designed to mislead hosts into believing an unlicensed provider has a licence.

By always checking a provider’s labour hire licence, hosts support lawful operators and protect themselves from disruption, penalties and potential involvement in unlawful and exploitative conduct.

Licence fraud can typically involve providers:

• producing fraudulent paper licences
• doctoring digital files relating to their licensing status
• claiming to be a specific licensed company without that provider's knowledge, then giving a host their own contact and bank details for payment.

Hosts can take two quick actions to protect their business and support LHA in working towards a fairer industry for businesses and workers:

• Check the provider’s licence on the Labour Hire Licence Register.
• Subscribe to be notified of any changes to licence status using the Follow my Providers tool.

For more information for hosts on how to protect their business when engaging labour hire, visit the host page.