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Australia – Labour hire firm fined after failure to disclose director’s prior convictions (ABC News)

02 December 2022

A labour hire company in Australia and its director have been fined over past convictions for drug trafficking and theft, reports ABC News. Labour hire companies require a licence to operate in the state and directors must be fit and proper. Ung Services Pty Ltd, which supplied horticulture workers in the Yarra Valley in Melbourne, Australia, failed to disclose that its new director, Nico Keat, had criminal convictions for drug trafficking and theft.

The Supreme Court of Victoria issued fines of AUD 386,742 (USD 263,634) to Ung Services, and AUD 96,685 (USD 65,908) to Keat, amounting to AUD 483,428 (USD 329,543) collectively, the largest combined penalty of its kind in Australian history. The case was prosecuted by the Labour Hire Authority (LHA).

Licence holders must notify the LHA if their directors or other key people change under the state's Labour Hire Licensing Act 2018. Labour Hire Licensing commissioner Steve Dargave said Keat had previously applied for a licence with another company and was refused. He then had another person apply for a licence, which was approved, and Keat put his name down as the sole director of Ung Services. The Authority cancelled Ung Services’ licence as a result and proceeded to pursue legal action.