Australia’s Fair Work Ombudsman launched legal action against a Queensland labour hire business and sweet potato farm, alleging it unlawfully deducted money from migrant employees, including for breaching its alcohol policy.

McCrystal Agricultural Services Pty Ltd and sole director Russell McCrystal are facing the court. The company operates a farm west of Bundaberg at South Kolan. It is an approved employer under the Pacific Australia Labour Mobility (PALM) scheme, which consolidated the Seasonal Worker Programme (SWP) and Pacific Labour Scheme (PLS).

The Fair Work Ombudsman alleges the company put in place a policy to fine employees AUD 500 (USD 342.22) for breaches of the company’s alcohol policy, which stated there was zero tolerance for workers under the influence of alcohol while staying on work site accommodation.

It is seeking penalties against McCrystal Agricultural Services Pty Ltd and Mr McCrystal for alleged contraventions of the Fair Work Act. The company faces penalties of up to AUD 66,600 (USD 45,583) per contravention, and Mr McCrystal faces a penalty of up to AUD 13,320 (USD 9,116).

Between January and March 2022, 29 employees faced fines under the alcohol policy, totalling AUD 14,500 (USD 9,924). Most of these impacted employees were living in accommodation on the farm.

It is also alleged that the company deducted AUD 2.50 (USD 1.71) more per week than the cost of the health insurance premiums obtained for the employees (a visa requirement), resulting in deductions between November 2021 and March 2022 of AUD 47.50 (USD 32.51) each for 27 of the company’s full-time employees, totalling AUD 1,282.50 (USD 877.71).

The Ombudsman also alleges that after overpaying 28 casuals for overtime in error in August 2021, the company then deducted, without the employees’ approval, AUD 2,548.60 (USD 1,744) from the employees’ wages to recover the overpayments in the following pay period.

The Ombudsman alleges that McCrystal Agricultural Services unlawfully deducted AUD 18,331 (USD 12,545) from 66 employees covered by the Horticulture Award 2020 for work performed between August 2021 and March 2022.

It also alleged the deductions breached section 324 of the Fair Work Act as the deductions were not principally for the benefit of the employees and were not otherwise lawfully authorized. Further, the overtime overpayment deductions were not authorized in writing.

In some instances, employees were only left with about AUD 150 (USD 102) net pay in a particular week following deductions, including the allegedly unlawful alcohol policy.

The farm workers, who were from the island country of Vanuatu, performed tasks such as cutting and sorting sweet potato vines into bundles, planting and packing sweet potatoes, weeding, general farm hand tasks, and constructing boxes for packaging.

Fair Work Ombudsman Anna Booth said the litigation highlighted the importance the workplace regulator places on the rights of visa holders.

“Acting to protect visa holder workers and ensuring compliance across the agriculture sector are priorities for the Fair Work Ombudsman,” Booth said in a press release.

The Ombudsman investigated the employer proactively because of its status as an approved employer under the scheme.

A directions hearing is listed in the Federal Circuit and Family Court in Brisbane on 3 February 2025.