The Labour Hire Authority of Victoria, Australia, commenced legal action in the Supreme Court of Victoria against a Keysborough, Victoria-based labour hire provider operating in the horticulture industry.

The authority alleges Monorom Labours Power Pty Ltd, which provided workers to regions including the Yarra Valley and Koo Wee Rup in the state of Victoria, allegedly failed to notify LHA of multiple changes in company directors and secretaries — a breach carrying maximum penalties exceeding AUD 30,000 (USD 19,590) for a company and AUD 7,500 (USD 4,897) for an individual. The case also alleges that one director and secretary of the company was not a fit and proper person as defined by the Labour Hire Licensing Act 2018 (Vic) — a breach carrying maximum penalties exceeding AUD 600,000 (USD 391,815) for a company and AUD 150,000 (USD 97,953) for an individual.

Under the act, directors and other key people involved in managing labour hire businesses must be fit and proper, to protect workers and improve the integrity of the industry. Relevant persons are assessed against a fit and proper person test as part of the licence application process. The Labour Hire Authority must be notified if directors or other relevant persons change or are no longer fit and proper under the act.

The Labour Hire Authority’s case seeks individual penalties against two directors – Saravong Tath and Visal Leab – as well as penalties against the company, for contraventions of the act.

It is alleged that Saravong Tath had been a director of two companies that were placed into administration within the preceding five years, and therefore not a fit and proper person to be a director and secretary of a labour hire provider under the act. The provider also allegedly made numerous changes in company directors and secretaries over a six-month period in 2022 without notifying the authority.

“Ensuring we have fit and proper people running Victorian labour hire companies helps to protect workers, and improve the industry’s integrity,” Labour Hire Licensing Commissioner Steve Dargavel said in a press release. “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.”